For any country, if the world price of copper is lower than the domestic price of copper without trade, that country should
a. export copper.
b. import copper.
c. neither export nor import copper, since that country cannot gain from trade.
d. neither export nor import copper, since that country already produces copper at a low cost compared to other countries.
b
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Other things being equal, an increase in the supply of money
A) reduces the amount of money balances. B) reduces aggregate demand. C) generates significant changes in relative prices. D) increases the price level.
Productivity growth in the service sector
a. is notoriously difficult to measure. b. is comparable to productivity growth in agriculture. c. has been slow compared with productivity growth in manufacturing. d. Both a and b are correct. e. Both a and c are correct.
The American Civil War lasted from the spring of 1861 to the spring of 1865. During the war the Confederate government issued substantial amounts of fiat paper currency
What do you think happened to the price level (measured in Confederate dollars) in the Confederate states during the final months of the war?
As a firm attempts to increase its production, its long-run average costs eventually rise because of
A) the law of diminishing returns. B) diseconomies of scale. C) fixed capital. D) insufficient demand.