Trade results from:
A. comparative advantage.
B. absolute advantage.
C. self-sufficiency.
D. diminishing returns.
Answer: A
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Although foreign exchange market trades are said to involve the buying and selling of currencies, most trades involve the buying and selling of
A) bank deposits denominated in different currencies. B) SDRs. C) gold. D) ECUs.
A 3 percent increase in the price of cotton leads to a 6 percent decrease in the quantity demanded of cotton. The absolute price elasticity of demand is
A) 3. B) 2. C) 0.5. D) 0.33.
Engineers for The Giffen Record Company have determined that a 35% increase in all compact disc inputs will cause a 45% increase in output. Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases.
A. average costs to decrease B. average costs to increase C. average costs to remain constant D. marginal costs to increase
The transition to a developing economy typically involves a movement away from agriculture.
Answer the following statement true (T) or false (F)