According to the principle of comparative advantage, a nation should specialize in economic activities
A) that incur lower opportunity costs.
B) that incur higher opportunity costs.
C) for which it has an absolute advantage.
D) for which it has no absolute advantage.
Answer: A
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Under what circumstances might it be more effective for people experiencing a negative externality to file a class-action lawsuit than attempt to resolve the problem through bargaining?
What will be an ideal response?
Suppose the nominal exchange rate rises from 82 to 90. The domestic currency has appreciated by ________ percent
A) ten B) nine C) eight D) 86
As of December 31, 2010, the assets listed on the balance sheet of Bank A were: $1.5 million in cash reserves, and $6 million in outstanding loans to its customers. Its liabilities totaled $6.5 million in checking deposits. What was the bank's net worth on that date?
a. $1 million b. $4.5 million c. $5 million. d. $14 million. e. Zero
Figure 17-13
In , if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, which area represents the amount of tariff revenue the United States government collects?
a.
a
b.
b
c.
c
d.
f
e.
e