Nations specialize when they _____.
(A) Produce certain goods and services more efficiently than other nations.
(B) Export more than they import.
(C) Have few natural resources and are required to endure a trade deficit.
(D) Import more than they export.
Ans: (A) Produce certain goods and services more efficiently than other nations.
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Natural gas is a natural monopoly. The figure above shows the market for natural gas in the city of Lucknow. When a marginal cost pricing rule regulation is imposed, the price per household per month is ________
A) $30 and 20,000 household are served B) $10 and 40,000 household are served C) $10 and 20,000 household are served D) $20 and 30,000 households are served
The segmented markets theory
A) has difficulty explaining why yield curves usually slope up. B) has difficulty explaining why yield curves usually slope down. C) has difficulty explaining why yields on instruments of different maturities tend to move together. D) provides a good explanation of why yields on instruments of different maturities tend to move together.
To maintain a functioning gold standard:
A) nations are obliged to exchange any amount of issued paper money for gold. B) paper money is not allowed; all transactions must be in coins or gold. C) the monetary authority cannot exchange currency for gold. D) care must be taken to keep inflation under 10%.
Refer to the above figure. Profits for this firm are
A. negative. B. zero. C. positive. D. undetermined without more information.