If there is no comparative advantage in the production of either of the two goods produced by countries 1 and 2, then
A) the benefits resulting from trade between the two countries are increased.
B) there are no gains from specialization and trade between the two countries.
C) one country must be more productive in producing all goods than the other.
D) each country should specialize in the production of a particular good.
E) none of the above
B
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The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:
a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.
Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
a. A U.S. electronics company opens and operates a new factory in India. b. A Swiss bank buys bonds issued by a U.S. company. c. A U.S. pension fund buys bonds issued by the Japanese government. d. A French restaurant opens and operates a restaurant in New York.
"A shortage is the same thing as scarcity." Do you agree or disagree with this statement? Why? What can cause a shortage to disappear in a market? What can cause scarcity to disappear?
What will be an ideal response?
In a market for emission permits, firms that emit over their allowed limits
A. must buy more allowances through a trading system. B. are forced to shut down. C. are taxed by the government for the amount of emissions. D. will sell their excess allowances through a trading system.