Comparative advantage indicates which specific terms of trade will arise, given two countries' production possibilities
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Table 10-2. If Keira maximizes her utility, how many units of each good should she buy?
A) 6 cups of soup and 2 sandwiches B) 1 cup of soup and 5 sandwiches C) 4 cups of soup and 3.5 sandwiches D) 3 cups of soup and 4 sandwiches
The aggregate supply curve relating the price level to real GDP has three distinguishing segments. Which one of the following indicates the segments?
a. The horizontal segment reflects the increasing pressure on the price level as firms bid for resources. The upward-sloping segment reflects the availability of unused resources. The vertical segment reflects the full employment of all resources. b. The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects the full employment of all resources. The vertical segment reflects the increasing pressure on the price level as firms bid for resources. c. The horizontal segment reflects the full employment of all resources. The upward-sloping segment reflects the increasing pressure on the price level as firms bid for resources. The vertical segment reflects the availability of unused resources. d. The horizontal segment reflects the availability of unused resources. The downward-sloping segment reflects decreasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources. e. The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
The economy is considered to be at full employment when
a. the actual rate of unemployment is less than the natural rate b. the leading economic indicators are unchanged for two consecutive quarters c. structural unemployment is zero d. frictional plus structural unemployment is less than the natural rate e. the rate of cyclical unemployment is zero
Since the 1960's, consumer spending in the U.S. has been approximately ________ percent of disposable income, whereas saving has been approximately ________ percent of disposable income
a. 30; 70 b. 50; 50 c. 65; 35 d. 90; 10