Gains from trade can be realized if each country specializes in the production of a good in which it has a comparative advantage
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is an example of spending on goods and services in the circular flow model?
A) Belinda purchases a new computer for her tax-preparation business. B) Timmy purchases a new examination table for use in his veterinary clinic. C) Celeste buys fresh herbs at the farmers' market to use in her restaurant. D) Javier buys 800 square feet of wood flooring for his vacation home.
A major force leading the U.S. economy to full employment after the Great Depression was
a. higher interest rates. b. higher reserve requirements. c. government spending for World War II. d. automobile production.
Figure 9.5 represents the market for used cars. Suppose buyers are willing to pay $5,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. If buyers believe that 80% of used cars in the market are lemons (low quality), what percent of used cars sold will actually be plums?
A. 20% B. 25% C. 33.33% D. 75%
If 2010 is the base year in the table shown above, what is the price index for the year 2010?
A. 100.0 B. 141.7 C. 147.1 D. 121.3