A nation has a comparative advantage in the production of cars over another nation if:
a. it can produce cars with fewer resources than the other country
b. it can produce cars at a lower opportunity cost than the other country.
c. it can produce cars at a higher opportunity cost than the other country.
d. it can produce cars at the same opportunity cost and its consumers have a stronger preference for cars than consumers in the other country.
b
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According to the graph shown, if this economy were to open to trade, which amount of surplus would be transferred?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. Area BC would be transferred to the consumer.
B. Area BCD would be transferred to the producer.
C. Area BCD would be transferred to the consumer.
D. Area BC would be transferred to the producer.
When quantity demanded exceeds quantity supplied at the current market price, the market has a shortage, and market price will likely rise in the future to eliminate the shortage
a. True b. False Indicate whether the statement is true or false
If a nation can produce a more computers per year than any other nation, that nation has a(n) ________ advantage in the production of computers.
A. absolute B. relative C. comparative D. natural
Higher nominal interest rates ________ the amount of money demanded and a higher price level ________ the amount of money demanded.
A. decrease; decreases B. decrease; increases C. increase; decreases D. increase; increases