In international trade the concept of 'relative opportunity cost' refers to
A) absolute advantage.
B) comparative advantage.
C) technical costs.
D) institutional advantage.
B
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What effect does an increase in the price of the firm's output have on its demand curve for labor? Why?
What will be an ideal response?
Which of the following factors does not affect the long-run supply and demand conditions of foreign currencies?
A) Relative inflation rates B) Relative productivity levels C) Tastes for domestic versus foreign goods D) All of the above affect the long-run supply and demand conditions of foreign currencies.
In a perfectly competitive market, firms take:
a. the money wage as exogenous, the price level as endogenous. b. the money wage and price level as exogenous, the quantity of labor as endogenous. c. the money wage and price level as endogenous. d. the quantity of labor as exogenous.
As the Fed shifted to a highly expansionary monetary policy during the second half of 2008, why were banks reluctant to extend loans and make investments?
a. Banks did not have enough excess reserves to extend loans and make investments. b. The demand for loans was weak and the business climate was uncertain. c. The rate of return on short-term investments was high, so banks were reluctant to make long-term investments. d. The interest rate that the Fed pays on excess reserves was maintained at a high rate.