Porter states that ______ can influence each of the four components of the diamond through subsidies, education policies and policies towards capital markets.

If firms and workers could predict the future price level exactly, the short-run aggregate supply curve would be

A) downward sloping. B) horizontal. C) upward sloping. D) vertical.

According to the Ricardian model, the source of comparative advantage is:

a. differences in labor productivity in different countries. b. differences in foreign trade policies followed by the government of various countries. c. differences in resource endowments of an economy. d. differences in the fields of research and development in a country. e. differences in the taste and preferences of the consumers in different countries.