The country Autarka does not allow international trade. In Autarka, you can buy a wool suit for 3 ounces of gold. Meanwhile, in neighboring countries, you can buy the same suit for 2 ounces of gold. This suggests that
a. Autarka does not have a comparative advantage in producing suits and would become a suit importer if it opened up trade.
b. Autarka has a comparative advantage in producing suits and would become a suit importer if it opened up trade.
c. Autarka does not have a comparative advantage in producing suits and would become a suit exporter if it opened up trade.
d. Autarka has a comparative advantage in producing suits and would become a suit exporter if it opened up trade.
Ans: a. Autarka does not have a comparative advantage in producing suits and would become a suit importer if it opened up trade.
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Which of the following countries had an economic growth rate equal to zero between 1960 and 2004?
A) South Africa B) Philippines C) South Korea D) Kenya
The equation of exchange is a(n)
a. identity relating the volume of transactions at current prices to the stock of money times the turnover rate of each dollar. b. "truism" and by itself does not explain the variables it contains. c. identity relating the volume of transactions at base year prices to the stock of money times the turnover rate of each dollar. d. Both a and b e. Both b and c