The basis for free trade is the concept of
A) absolute advantage.
B) differences in natural resources and climate.
C) differences in nominal wages.
D) comparative advantage.
D
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The Federal Open Market Committee's "balance of risks" is an assessment of whether, in the future, its primary concern will be
A) higher exchange rates or higher unemployment. B) higher inflation or a stronger economy. C) higher inflation or a weaker economy. D) lower inflation or a stronger economy.
__________ is the set of characteristics, skills and knowledge that distinguishes certain people from novices and less experienced people
a. Expertise b. Imagineering c. Performance d. A value chain
Which economic principle states that when more of a good is consumed, the incremental satisfaction delivered by that good decreases?
a. the law of consumer choice b. the law of consumer equilibrium c. the law of demand d. the law of diminishing marginal utility
Which of the following support the idea that monetary policy should be made by a rule?
a. the political business cycle and the time-inconsistency problem
b. the political business cycle but not the time-inconsistency problem
c. the time-inconsistency problem, but not the political business cycle
d. neither the political business cycle nor the time-inconsistency problem