Refer to Table 2-5. Finland has a comparative advantage in the production of
A) lumber. B) neither product. C) cell phones. D) both products.
C
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Explain when a country would face a balance of payments deficit and when it would face a balance of payments surplus if it was operating under a fixed exchange rate system
What will be an ideal response?
According to the efficient markets hypothesis, who is most likely to benefit from frequently moving funds from one asset to another?
A) your broker B) small investors C) big investors D) only those who consistently beat the market
Because a type of fish is on the verge of extinction, the government imposes rules that prohibit fishing in the publicly spawned grounds. At first, owners of fishing boats complain about this restriction on where they can fish, but soon they notice that the number of adult fish swimming outside the protected area is much higher than it was before. With the restriction, each fishing boat ends up catching more fish than it did before the restriction was in place. Which of the following principles of economic interaction best describes this scenario?
A) Markets usually lead to efficiency.
B)There is a trade-off between equity and efficiency.
C) When markets do not achieve efficiency, government intervention can improve welfare.
D) Markets move toward equilibrium.
If the simple money multiplier is 5, the required reserve ratio must be equal to _____
a. 5 percent b. 0 c. 10 percent d. 50 percent e. 20 percent