Which one of the following terms of trade is most likely to produce mutually-beneficial exchange between the two nations?
If Nations Quirk and Turk only produce aluminum or oil, the table below shows the maximum output of each nation:
A. 0.5 unit of oil for 1 unit of aluminum
B. 0.5 unit of oil for 2 units of aluminum
C. 1 unit of oil for 0.4 unit of aluminum
D. 1 unit of oil for 4 units of aluminum
C. 1 unit of oil for 0.4 unit of aluminum
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Which of the following will result in an increase in labor productivity?
A) a decline in the capital stock per hour worked B) a decline in the amount of human capital per worker C) an increase in technology D) a decrease in the number of people attending institutions of higher education
The classical model is a model in which
a. governmental policies are needed to ensure full employment. b. wages and prices are perfectly flexible. c. the public has perfect information. d. None of the above e. b and c