Two countries can achieve gains from trade even if one country has an absolute advantage in the production of both goods
a. True
b. False
Indicate whether the statement is true or false
True
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Capital gains are taxed at a different rate than income and this reduces revenues the government receives. All else equal, what would happen if capital gains taxes were eliminated?
A) They would have to be replaced by a consumption tax. B) The government would not be able to spend money on any programs. C) Everyone would have to pay less in taxes. D) The deficit would increase because of lack of revenues.
In which of the following cases would the quantity of money demanded be largest?
a. r = 0.03, P = 1.2 b. r = 0.03, P = 1.3 c. r = 0.04, P = 1.2 d. r = 0.05, P = 0.9
Explain the difference between substitutes and complements
What will be an ideal response?
Assuming all else equal, if ________, net exports are positive
A) exports exceed transfer payment B) imports exceed exports C) imports exceed transfer payments D) exports exceed imports Lawland imports cell phones worth $1,000 billion, and exports coffee worth $820 billion in a year.