Some time ago, the nation of Republica opened up its paper market to international trade. Which of the following results of this policy change is consistent with the notion that Republica has a comparative advantage over other countries in producing paper?
a. The price of paper in Republica decreased as a result of the policy change.
b. Republica began exporting paper as a result of the policy change.
c. The domestic demand curve for paper shifted to the right as a result of the policy change.
d. The domestic quantity of paper demanded increased as a result of the policy change.
b
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Using the data in the above table, in the short-run macroeconomic equilibrium, there is
A) an inflationary gap of $1 trillion. B) an inflationary gap of $2 trillion. C) a recessionary gap of $1 trillion. D) a recessionary gap of $2 trillion.
Required reserves represent
A. Dollars that may be lent. B. A flaw in the banking system. C. A leakage from the flow of money. D. The desire on the part of some banks to hold funds and not lend them out.
If an amusement park that is highly profitable during the summer months is unable to cover its variable costs during the winter months, it should
a. raise its prices during the winter months. b. lower its prices during the summer months. c. operate during the summer but shut down during the winter months. d. operate during all months of the year as long as its profits during the summer exceed its losses during the winter.
Based on the information in the table, how many people are out of the labor force? Population 16 and older1,000,000Participation Rate80%Employed Workers720,000
A. 280,000 B. 144,000 C. 200,000 D. 576,000