A country has a comparative advantage in the good that it can produce
a. at a lower cost in terms of other goods.
b. using fewer resources than its trading partner uses.
c. at a lower cost than its trading partner can produce.
d. using more resources than its trading partner uses.
a. at a lower cost in terms of other goods.
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Suppose Acme County Bank and Trust has $1 million in total deposits and the required reserve ratio is 5%. How many dollars is Acme bank allowed to use to seek profits?
A) 0 B) $50,000 C) $500,000 D) $950,000 E) Trick question: banks aren't allowed to seek profit.
From the price-setter's point of view, the appropriate cost of a good is
A) the inventory cost. B) the marginal cost. C) the sunk cost. D) the wholesale cost.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
The United States has roughly how much of the world's population?
A. 15 percent. B. 20 percent. C. 5 percent. D. 10 percent.