According to international trade theory
A) trade is based on absolute advantage.
B) comparative advantage is based on absolute advantage.
C) every country has a comparative advantage in something.
D) less developed countries cannot trade successfully with developed countries.
C
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The main argument against Fed independence is that
A) in a democracy elected officials should make public policy. B) monetary and fiscal policy would be easier to coordinate if the Fed were not independent. C) the Fed has proven irresponsible on many occasions. D) congressional control was tried during the 1960s and it worked well.
Persons whose utility functions are concave with respect to wealth are said to be
A. risk-seekers. B. risk-averse. C. risk-neutral. D. fair gamblers.
Demand is more elastic for an item for which few substitutes are available.
Answer the following statement true (T) or false (F)
Monopolists who perfectly price discriminate produce the socially efficient level of output.
Answer the following statement true (T) or false (F)