It can be shown that differences in "beforetrade" relative prices will determine:
a. which nation has the absolute advantage.
b. which good each nation will export or import.
c. the quantity traded by each nation.
d. which nation has the comparative advantage.
Ans: b. which good each nation will export or import.
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In managing its liabilities to deal with liquidity problems, banks trade off
A) credit risk against interest rate risk. B) adverse selection against moral hazard. C) the need for available funds to meet deposit outflows against the desire for greater profit. D) present tax liabilities against future tax liabilities.
Persons in the civilian labor force fall into one of two categories: ____________ or ___________.
a. job leaver; job loser b. entrant; reentrant c. employed; unemployed d. discouraged workers; encouraged workers
A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market prices to allocate goods and resources is often called?
What will be an ideal response?
Between March 2001 and November 2002, the Fed reduced the federal funds rate from 5 percent to just above 1 percent. The Fed's purpose was to:
A. prevent rising inflation. B. reduce the public debt. C. promote recovery from recession. D. strengthen the international value of the dollar.