In a two-nation, two-good world, which of the following statements is true?
A. One nation cannot possibly have an absolute advantage over the other nation in both products
B. If one nation as the comparative advantage in one product, then the other nation would have the comparative advantage in the other product
C. One nation will always have the comparative advantage over the other nation in one of the products
D. If one nation has the absolute advantage in one product, then the other nation would have the absolute advantage in the other product
B. If one nation as the comparative advantage in one product, then the other nation would have the comparative advantage in the other product
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According to Marx, which of the following factors of production did not contribute anything of value to production?
A) capital B) entrepreneurship C) natural resources D) labor
A cut in government spending will cause a(n) _________ in aggregate demand, and a decrease in the discount rate will cause a(n) _______ in aggregate demand.
a) increase; decrease b) increase; increase c) decrease; decrease d) decrease; increase e) none of the above