Answer the following questions true (T) or false (F)
1. Today, the United States charges an average tariff rate of less than 1.5 percent.
2. The ability of a firm or country to produce a good or service at a lower opportunity cost than other producers is called absolute advantage.
3. If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product.
1. TRUE
2. FALSE
3. FALSE
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Refer to Figure 9.2. A movement from point b to point d could be caused by a(n)
A) decrease in government spending. B) increase in the price of oil. C) decrease in taxes. D) increase in short-run aggregate supply.
If the Fed raises the interest rate, in the foreign exchange market the demand for the U.S. dollar increases
Indicate whether the statement is true or false
The government budget constraint says that ________
A) the difference between spending and revenues must equal the amount of new bond issues B) increases in spending must be matched by increases in revenue C) interest on government debt must be paid before tax revenues are spent on goods and services or disbursed as transfer payments D) state and local governments, in aggregate, cannot spend more than the federal government
Credit card limits are included in
a. M1 but not M2. b. M2 but not M1. c. M1 and M2. d. neither M1 nor M2.