Given the information in the figure above, Liz ________ benefit from trade with Joe because ________
A) can; each of them has a comparative advantage in one of the goods
B) can; each of them has an absolute advantage in one of the goods
C) cannot; she has an absolute advantage in both goods
D) cannot; she has a comparative advantage in both goods
E) can; Joe is more productive in producing one of the goods
A
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Suppose a nation opens up to free trade and becomes an exporter of goods. Which of the following is then true?
A) The nation as a whole suffers losses. B) Sellers lose. C) Buyers lose. D) Buyers gain.
To test the null hypothesis of a unit root, the ADF test
A) has higher power than the so-called DF-GLS test. B) uses complicated interative techniques. C) cannot be calculated if the variable is integrated of order two or higher. D) uses a t-statistic and a special critical value.
What interest rate does the Fed charge when it makes loans to banks?
a. the prime rate b. the U.S. Treasury Bond rate c. the discount rate d. the federal funds rate e. the U.S. Treasury Bill rate
For a competitive, profit-maximizing firm, the demand curve for labor will shift in response to a change in the
a. wage rate. b. quantity of labor demanded. c. price of the product that the firm sells. d. an increase in the supply of labor.