A country has a comparative advantage when the opportunity cost of producing a good in terms of:
a. the monetary value of other forgone goods is lower than that of other nations.
b. the monetary value of other forgone goods is greater than that of other nations.
c. forgone output of other goods is higher than that of other nations.
d. forgone output of other goods is lower than that of other nations.
e. forgone output of other goods is equal to that of other nations.
d
You might also like to view...
As the price of home heating oil rises, families buy less home heating oil. Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationshi
A) time-series B) linear C) negative D) positive E) cross-sectional
Within the IS-LM curve model, if the government cut taxes at the same time that there was an autonomous increase in investment demand, then
a. income would rise and the interest rate would fall. b. income and the interest rate would rise. c. income would rise but the effect on the interest rate is uncertain. d. the interest rate would rise but the effect on income is uncertain. e. the effects on both income and the interest rate are uncertain.
Which of the following is NOT an appropriate role for government to play in the economy?
A. Addressing externalities B. Promoting free speech in marketing C. Redistributing income D. Regulating markets
Why do banks package loans into securities?
A. To take advantage of tax breaks passed by the federal government as part of stimulus packages. B. The banking regulations require them to do so. C. To spread the risk of default and increase liquidity. D. To get around adhering to current banking regulations.