Suppose an American worker can make 100 chairs or catch 1,000 fish per day. A Chilean worker, on the other hand, can produce 40 chairs or catch 400 fish per day. Which of the following statements is true?
A. The United States has the comparative advantage in chair production.
B. Chile has the comparative advantage in chair production.
C. Both the United States and Chile have a comparative advantage in chair production.
D. Neither the United States nor Chile has a comparative advantage in chair production.
D. Neither the United States nor Chile has a comparative advantage in chair production.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
If the Fed bases its monetary policy on judgments of its policymakers about the current needs of the economy, it is following
A) discretionary policy. B) a money targeting rule. C) an inflation targeting rule. D) wait-and-see policy. E) a monetary base instrument rule.
Which of the following is most likely to be a major source of growth in per capita GDP?
a. a high investment/GDP ratio b. a high rate of inflation c. rapid population growth d. rapid growth in the money supply
Which market type below is regarded as least competitive in Mainstream Economics?
a) Monopoly. b) Oligopoly. c) Monopolistic competition. d) Perfect competition.