Which of the following statements best describes the comparative advantage of the corresponding country regarding the iPhone?
a. The United States has a comparative advantage in designing and marketing products.
b. China has a comparative advantage in designing and marketing products.
c. Korea has a comparative advantage in producing components.
d. China has a comparative advantage in producing components.
a. The United States has a comparative advantage in designing and marketing products.
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When a binding price ceiling is imposed on a market,
a. price no longer serves as a rationing device. b. the quantity supplied at the price ceiling exceeds the quantity that would have been supplied without the price ceiling. c. all buyers benefit. d. All of the above are correct.
A fractional reserve banking system is a system whereby
A. a central bank tells all banks what fraction of the population they can serve. B. banks keep at least 100 percent of their deposits on hand as reserves. C. banks specialize so that one type of bank handles one kind of deposit and another type of bank handles another type of deposit. D. banks keep only a fraction of their deposits on hand as reserves.
Assume that in Atlantis the actual deficit is $200 billion. If Atlantis were at full employment, the deficit would be $50 billion. The structural deficit in Atlantis is
A. $50 billion. B. $100 billion. C. $150 billion. D. $200 billion.
Which of the following is correct?
a. Economic fluctuations are easily predicted by competent economists. b. Recessions have never occurred very close together. c. Spending, income, and production do not fluctuate closely with real GDP. d. None of the above is correct.