An important determinant of comparative advantage is:
A. diversity in climate and natural resources.
B. endowment of financial capital.
C. low governmental barriers to trade.
D. well established governmental regulations on trade.
A. diversity in climate and natural resources.
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During the short-run period of the production process, a firm is: a. unable to vary any of its factors of production
b. able to vary only some of its factors of production. c. able to vary all of its factors of production. d. able to vary the size of its plant.
Rent seeking is a way of earning profit without adding to the product’s value.
Answer the following statement true (T) or false (F)
When the Fed lowers the growth rate of the money supply, it must take into account
a. only the short-run effect on production. b. only the short-run effects on inflation and production. c. only the long-run effect on inflation. d. the long-run effect on inflation as well as the short-run effect on production.
An overvalued exchange rate is an exchange rate:
A. at which the quantities of currencies demanded and supplied in the foreign exchange market are equal. B. that equals the number of units of a foreign currency over the number of units of domestic currency. C. that has an officially fixed value less than its fundamental value. D. that has an officially fixed value greater than its fundamental value.