Having a comparative advantage means a nation can
A) benefit from trade.
B) produce at a higher opportunity cost.
C) produce more of the good.
D) produce without incurring an opportunity cost.
E) produce the good at a point beyond its PPF.
A
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Which of the following is not an automatic stabilizer?
a. Forward-looking behavior b. Interest rates c. Imports d. Transfer payments e. Consumption spending
Which of the following describes adverse selection in the insurance market?
a. The buyer has more information than the seller about whether they are high or low risk. b. The buyer behaves in a way they would not behave if they did not have insurance. c. The seller has more information about whether a buyer is high or low risk. d. The buyer and the seller know whether the buyer is high or low risk.
Which of the following would not be classified as capital by economists?
A. Laptop computers at a technology company B. Sewing machines at a clothing factory C. A corporate bond from IBM D. Gym equipment at a local fitness center
Discuss the differences between Keynesian and supply-side fiscal policies.
What will be an ideal response?