When a country specializes and trades with other countries, it is most likely that it specializes in goods for which
A) it has a comparative advantage.
B) it has an absolute advantage.
C) it has no advantage.
D) are very costly to produce.
A
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Since the 1950s, the percentage of women working in the United States has held relatively steady.
Answer the following statement true (T) or false (F)
Which of the following is an example of a normative question?
A) What fraction of an income tax cut will be spent on imported goods? B) How will an increase in the inheritance tax affect tax revenues? C) How will an increase in unemployment benefits affect the unemployment rate? D) Should Florida implement a state income tax to reduce its deficit?
Preston goes to the movies every Sunday afternoon. The movie theater offers 4 combinations of popcorn and beverages: the "mini-combo" costs $5 and includes a small popcorn and a small drink, the "medium-combo" costs $7 and includes a medium popcorn and a medium drink, the "value-combo" also costs $7 and includes a small popcorn and a large drink, and the "large-combo" costs $9 and includes a
large popcorn and a large drink. Preston always purchases the "value-combo.". We can conclude that a. Preston cannot afford the "large-combo.". b. Preston cannot afford the "medium-combo.". c. Preston prefers a combo with a larger popcorn-to-beverage ratio. d. Preston prefers a combo with a smaller popcorn-to-beverage ratio.
According to purchasing-power parity, if over the course of a year the price level in the U.S. rises more than in Canada, then which of the following rises?
a. the U.S. real exchange rate, but not the U.S. nominal exchange rate b. the U.S. nominal exchange rate, but not the U.S. real exchange rate c. the U.S. nominal exchange rate and the U.S. real exchange rate d. neither the real exchange rate nor the nominal exchange rate