A country will export wheat if, with no international trade, ______
A. it produces a surplus of wheat
B. its opportunity cost of producing wheat is below the world price
C. its domestic price of wheat exceeds the world price
D. other countries have a shortage of wheat
B If the opportunity cost of producing wheat is below the world price, the country has a comparative advantage in wheat pro-duction.
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The idea that investment in comprehensive education in developing countries leads to permanent increases in the rate of technological progress is an example of
A) a trade-off between human capital and technology. B) increasing economic inequality. C) capital deepening. D) new growth theory.
Suppose velocity does not change. Then, in the long run, a growth rate of the quantity of money that exceeds growth in real GDP has what effect?
What will be an ideal response?