Suppose that a nation has an absolute advantage in the production of all goods. In this instance, it
a. has no incentive to engage in international trade
b. is producing at a point on its production possibilities frontier
c. has no unemployment
d. also has a comparative advantage in the production of those goods
e. should specialize in producing the goods for which it has a lower opportunity cost than other countries
E
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Some amount of every security in existence is held in the hypothetical __________ portfolio
A) perfect B) market C) systematic D) nonsystematic
Suppose that, since the base year, all prices have risen by 100%. This year's current-dollar GDP is $2,000 billion. Then constant-dollar GDP is
A. $4,000 billion. B. $3,000 billion. C. $2,000 billion. D.$1,000 billion. E. $500 billion.
Which of the following statements is false?
A. The Standard Oil trust forced its rivals out of business. B. The Clayton Act expressly exempted labor unions from prosecution under the Sherman Act. C. The judge in the Microsoft case concluded that the company used anticompetitive means to maintain a monopoly for its PC operating system software. D. The rule of reason originated in the ALCOA case of 1945.
The law of demand refers to the:
A. inverse relationship between the price of a good and the quantity of a good that people are willing to buy. B. price increase that results from an increase in demand for a good of limited supply. C. inverse relationship between the price of a good and the quantity offered for sale. D. increase in the quantity of a good available when its price increases.