Which of the following is correct about comparative advantage?
A) Some countries will have a comparative advantage in everything.
B) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country.
C) Having a comparative advantage without an absolute advantage is impossible.
D) A comparative advantage in a good means that the country can produce more of the good than any other country.
E) None of the above answers is correct.
B
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What are the five main economic goals of the United States?
What will be an ideal response?
A rightward shift of the BP curve occurs with a
a. fall in the exchange rate. b. cut in taxes. c. decrease in government spending. d. an increase in exports.
In the macroeconomy, demand-side shifts change:
A. aggregate demand only, which is why the price level remains unaffected in the long run. B. only the output level in the long run, while prices eventually return to their long-run potential levels. C. only the price level in the long run, while output eventually returns to its long-run potential level. D. aggregate demand only, which eventually shifts back in the long run.
A political leader suggesting that an economic downturn will be better dealt with actively changing tax and spending policies is advocating
A. Monetary policy. B. Discretionary Fiscal Policy. C. Regulatory changes. D. Nondiscretionary Fiscal Policy.