Refer to the above table. If opportunity costs are constant, the two countries will gain from trade at a rate of exchange of
A) 0.1 computer for 1 bicycle.
B) 5 computers for 1 bicycle.
C) 1 computer for 1 bicycle.
D) 8 bicycles for 1 computer.
C
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The maximum likelihood estimation method produces, in general, all of the following desirable properties with the exception of
A) efficiency. B) consistency. C) normally distributed estimators in large samples. D) unbiasedness in small samples.
If the cost of a typical basket of goods in the U.S. is $100 and in France it is 400 euros, and the nominal exchange rate is 2 euro per dollar, what is the real exchange rate?
A. 0.5. B. 1.0. C. 1.5. D. 2.0.
If Bob has an absolute advantage over Pete in both typing and woodworking, then Bob also has a comparative advantage over Pete in both activities
a. True b. False
Which of the following is true?
a. Tax rates do not influence economic growth. b. Countries with high marginal tax rates have generally had higher rates of economic growth than those with low tax rates. c. Countries with low marginal tax rates have generally had higher rates of economic growth than those with high tax rates. d. Countries that impose high marginal tax rates at low-income thresholds generally have high rates of economic growth.