Comparative advantage and trade allow nations to specialize in the production of a larger number of different goods.
a. true
b. false
Ans: b. false
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The duration of an expansion is measured from:
A. peak to peak. B. peak to trough. C. trough to trough. D. trough to peak.
The marginal cost curve
A) shows the maximum price that a producer must receive to induce it to produce a unit of a good or service. B) shows the minimum price sellers must receive to produce a unit of a good or service. C) is the same as the demand curve. D) shows what buyers are willing to give up to get one more unit of a good or service.
In Europe, government regulations discourage consumer credit. "It's to protect the consumer from himself," says Jacques Zeegers, secretary general to the Belgian Banking Association. As far as Mr. Zeegers is concerned, the government should worry that there is a failure caused by:
A. rationality problems of individuals. B. violations of inalienable rights. C. economic efficiency. D. distributional issues.
The cross price elasticity for coffee for a change in the price of tea is likely to be
A. negative but less negative than -1. B. zero. C. positive. D. negative and more negative than -1.