Which of the following statements best describes the potential gains from trade?
a. The potential for gains from trade may be especially low among the smaller and lower income countries of the world.
b. The potential for gains from trade may be especially high among the smaller and lower income countries of the world.
c. The potential for gains from trade may be especially high among the medium and larger income countries of the world.
d. The potential for gains from trade may be especially high among the smaller and medium income countries of the world.
b. The potential for gains from trade may be especially high among the smaller and lower income countries of the world.
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In real business cycle models, shifts of the aggregate demand curve ________
A) cause changes in inflation, but have no effect on output B) cannot occur C) result from changes in the willingness to work D) result from Solow residuals
Including investment and production in the two-good, two-period model with trade
A) allows the country to equalize absorption and output demand. B) renders terms of trade endogenous. C) allows the country to react to changes in the interest rate. D) allows the government to run budget deficits.
The relationship between the value and the price of a stock suggests that
A. the equilibrium price of a stock strikes a balance between those who think the stock is worth more and those who think the stock it's worth less at the current price. B. it is the stock market's best guess regarding the expected value of the company's future profits. C. stocks are overvalued. D. both A and B are true.
The world's population increased so rapidly from 1800 to the present day because of higher:
A. Birthrates and lower standards of living B. Standards of living and higher birthrates C. Standards of living and lower death rates D. Death rates and higher standards of living