Which of the following statements is not true?
A. Trade is beneficial because it allows consumption beyond the production possibility frontier.
B. Trade is beneficial because it allows all domestic industries to increase production.
C. Trade is beneficial because it allows more efficient production.
D. Trade is beneficial because it allows consumers to buy goods at cheaper prices.
Answer: B
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In the table above, which of the following is TRUE?
A) Jim and Sally have increasing marginal utility. B) Jim has increasing marginal utility and Sally has diminishing marginal utility. C) Jim has diminishing marginal utility and Sally has increasing marginal utility. D) Jim and Sally have diminishing marginal utility.
A country that borrows more from the rest of the world than it lends to it in a year is called a ________, and a country that lends more to the rest of the world than it borrows from it in a year is called a ________
A) borrower; lender B) importer; exporter C) net borrower; net lender D) gross borrower; gross lender