In order to know whether a country has a comparative advantage in the production of one particular product we need information on at least ________ unit labor requirements
A) one
B) two
C) three
D) four
E) five
D
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________ occurs when the Fed creates a large amount of reserves to buy long-term bonds from banks
A) Budgetary surplus B) Monetary neutrality C) Money illusion D) Quantitative easing
Typically, borrowers have superior information relative to lenders about the potential returns and risks associated with an investment project. The difference in information is called
A) moral selection. B) risk sharing. C) asymmetric information. D) adverse hazard.
Scarcity
A) exists in all human societies. B) is a problem for less-developed nations only. C) used to be a problem, but is not an issue for modern industrial nations. D) afflicts greedy people only.
If the real interest rate is below equilibrium, which of the following is likely to occur? a. Lenders will raise their interest rates which will encourage saving
b. Lenders will raise their interest rates which will encourage borrowing. c. Lenders will lower their interest rates which will encourage saving. d. Lenders will lower their interest rates which will encourage borrowing.