Refer to the above table. If opportunity costs are constant, residents of the United States will gain from specializing and trading with Switzerland if the
A) produce both clocks and films and export clocks to Switzerland.
B) produce both clocks and films and export both to Switzerland.
C) import films and export clocks to Switzerland.
D) import clocks and export films.
D
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A sale of foreign assets by a central bank has the same effect on the monetary base as
A) a decrease in the discount rate. B) a decrease in the required reserve ratio. C) an open market sale of government bonds. D) an open market purchase of government bonds.
Advertising by monopolistically competitive firms can do all of the following EXCEPT
A) lower the consumer's purchase price. B) help differentiate a firm's product. C) act as a signal to consumers that the company is serious about staying in business. D) result in increased profits for the advertising firm.
When the Fed buys U.S. government securities from a member bank, _____
a. there is a decrease in its assets b. there is an increase in its assets c. there is a decrease in its liabilities d. there is an increase in its liabilities e. its total assets and liabilities remain unchanged
When an economy is operating under conditions of full employment, the production of more of commodity A will mean the production of less of commodity B because:
A. of the law of increasing opportunity costs. B. economic wants are insatiable. C. resources are limited. D. resources are specialized and only imperfectly substitutable.