If the U.S. dollar is pegged to gold, then
A) the Federal Reserve must adjust the supply of U.S. dollars when the price of gold changes.
B) the government must buy and sell gold reserves when the price of the dollar changes.
C) the U.S. dollar will not change in value since the price of gold is constant.
D) the U.S. dollar would become more valuable than the Euro.
A
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The difference between iron ore deposits and the steel produced from these deposits that is later used to make factory equipment illustrates the difference between:
A) labor and a natural resource. B) labor and capital. C) a natural resource and capital. D) a natural resource and entrepreneurship.
Mexico has lower wages than the United States. Does this necessarily mean that it will have a comparative advantage in the production of everything compared to the United States?
What will be an ideal response?