A nation can gain from international trade when the relative domestic prices of the nation differs from that in other countries, and it imports goods for which it is a high opportunity cost producer
a. True
b. False
Indicate whether the statement is true or false
True
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How should a financial plan of an older saver differ from that of a younger saver?
What will be an ideal response?
Exhibit 14A-1 Aggregate demand and supply model
Beginning in Exhibit 14A-1 from long-run equilibrium at point E1, the aggregate demand curve shifts to AD2 . The economy's path to a new long-run equilibrium is represented by a movement from:
A. E3 to E1 to E2. B. E1 to E3 to E2. C. E2 to E1 to E2. D. E1 to E2 to E3.
If a CEO can type faster than her secretary, then
A) the CEO has a comparative advantage in typing. B) the CEO has neither a comparative advantage in typing, nor in management. C) the CEO should still continue performing CEO duties since the CEO has a comparative advantage in management, and the secretary should continue typing. D) the CEO should still continue performing CEO duties as well as typing since he has a comparative advantage in both management, and typing.
In the above figure, if the minimum wage is set at $6 per hour, what quantity of labor is employed?
A) 100 million hours B) 200 million hours C) 300 million hours D) 400 million hours