If a country has a comparative advantage in the production of all goods, it should
a. specialize in the production of goods with the lowest opportunity cost
b. specialize in the production of goods with the highest opportunity cost
c. specialize in the production of goods with the absolute advantage
d. specialize in the production of goods without the absolute advantage
e. not specialize at all and produce all the goods itself
A
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The ________ is the interest rate that banks charge each other for overnight loans
A) spot interest rate B) discount window interest rate C) federal funds rate D) subsidized banking interest rate
Refer to Table 23-2. Using the table above, compute aggregate expenditure and identify the macroeconomic equilibrium
What will be an ideal response?
Income tax on the wealthy to finance the welfare for the poor causes income redistribution. This is an example for the trade-off
A) Which goods and services to produce. B) How to produce. C) Who gets the goods and services. D) Who produces the goods and services.
In the market for Canadian dollars measured in US dollars, the supply of Canadian dollars is
a. The demand for Canadian dollars b. The demand for US Dollars c. The supply of US dollars d. None of the above