According to the Ricardian model, the source of comparative advantage is:
a. differences in labor productivity in different countries.
b. differences in foreign trade policies followed by the government of various countries.
c. differences in resource endowments of an economy.
d. differences in the fields of research and development in a country.
e. differences in the taste and preferences of the consumers in different countries.
a
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Which type of market structure contains a single buyer?
a. Monopoly. b. Monopsony. c. Oligopoly. d. Oligopsony.
A student was heard to remark, “Even though I am certain to fail this course, I cannot withdraw from it since it is too late to get back my tuition.” Use one or more “Ideas for Beyond the Final Exam” to analyze this reasoning.
What will be an ideal response?
Attempts to influence the law for your own private economic advantage is called
A) tax imposition. B) subsidizing. C) rent seeking. D) creating a deadweight loss.