If domestic producers have a comparative advantage in producing a good,
a. trade restrictions will be required before the producers can benefit from their comparative advantage.
b. trade restrictions will still be required before the domestic producers can compete with low-wage producers abroad.
c. they will be able to compete effectively in a competitive world market.
d. the government should subsidize production of the good so the domestic producers will be able to achieve a larger share of the world market.
C
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A statistical technique used to isolate the individual effects of a number of factors on a single outcome is called
A) the audit method. B) regression analysis. C) statistical discrimination. D) taste-based discrimination.
Sharecropping can be best understood as
(a) a type of agreement preferred by peasants. (b) a type of agreement preferred by landlords. (c) a compromise between peasant and landlord preferences. (d) a type of agreement preferred by neither but given by tradition.
Suppose output is $35 billion, government purchases are $10 billion, desired consumption is $15 billion, and desired investment is $6 billion. Absorption is equal to
A) $25 billion. B) $31 billion. C) $35 billion. D) $39 billion.
Which of the following is blamed for the lack of increased business investment spending on new factories and machinery during the 1930s?
(a) The new presence of government's large-scale economic activity caused business to lose some of its former confidence. (b) The general outlook stressed caution. (c) A much lower rate of population growth and family creation depressed the housing market. (d) All of the above.