The country with a comparative advantage in the production of good X is the one that:
A. can produce good X at the lowest opportunity cost.
B. can produce good X with the least labor.
C. has the greatest supply of the natural resources used in producing good X.
D. has the greatest technical efficiency in producing good X.
Answer: A
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Every six weeks, the Federal Open Market Committee (FOMC) meets to discuss how to best adjust ________ to accommodate shocks that shift the level of ________
A) the equilibrium real interest rate; the target Fed Funds rate B) the target Fed Funds rate; the equilibrium real interest rate C) the 3 month T-bill rate; the inflation gap D) target rate of inflation; money demand E) none of the above
The adaption of new technology in low-income countries can be difficult if: a. they lack appropriate supportive economic institutions. b. their natural rates of unemployment are more than 5 percent
c. their GDP gaps is large. d. they experience hyperinflation for a considerable period of time.
The legally established value of a country's monetary unit in terms of another under the Bretton Woods system was called the
A. par value. B. dirty float. C. exchange rate. D. special draw.
In the long run the corporate profits tax may lead to
A. lower prices for the products of corporations as well as lower prices for the products of partnerships and proprietorships. B. higher prices for the products of corporations and lower prices for the products of partnerships and proprietorships. C. higher prices for the products of corporations as well as higher prices for the products of partnerships and proprietorships. D. lower prices for the products of corporations and higher prices for the products of partnerships and proprietorships.