Trade occurs only when a country has an absolute advantage and not just a comparative advantage over another country
a. True
b. False
Indicate whether the statement is true or false
False
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The net gain to society from changing output from QC to QE is
Consider the following graph of the market for chemical solvents, production of which damages a waterbody used for recreation.
a. DG b. DEH c. DGH d. DEHG
Under perfect capital mobility
a. there are no restrictions on buying financial assets, though there may be on buying factories and equipment. b. transactions costs have to be zero. c. differential risk in assets across countries are minimal. d. All of the above e. None of the above
An increase in the foreign price of the U.S. dollar is called:
a. depreciation of the U.S. dollar. b. appreciation of the U.S. dollar. c. appreciation of the foreign currency. d. readjustment of the U.S. dollar. e. readjustment of the foreign currency.
For all firms, the additional revenue collected from the sale of one additional unit of output is termed:
A. marginal profit. B. average revenue. C. price. D. marginal revenue.