Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade. These examples are misleading because
A) some individuals in both countries may be made worse off because of trade.
B) trade restrictions are likely to be imposed as trade grows over time.
C) they do not account for the reduction in wages that occurs in both countries as a result of trade.
D) in the real world, rich countries can take advantage of poor countries.
A
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Classical growth theory asserts that
A) growth in real GDP per person is temporary. B) only some countries can have economic growth. C) real GDP growth will eventually be a constant 3 percent per year. D) nominal GDP growth is most important.
To infer the political tendencies of the students at your college/university, you sample 150 of them. Only one of the following is a simple random sample: You
A) make sure that the proportion of minorities are the same in your sample as in the entire student body. B) call every fiftieth person in the student directory at 9 a.m. If the person does not answer the phone, you pick the next name listed, and so on. C) go to the main dining hall on campus and interview students randomly there. D) have your statistical package generate 150 random numbers in the range from 1 to the total number of students in your academic institution, and then choose the corresponding names in the student telephone directory.