A country is said to have an absolute advantage in the production of a good when:
a. its opportunity cost of producing the good is lower than another country.
b. it can produce the good using fewer resources than another country.
c. it specializes in the production of the good.
d. all of these.
b
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In which of the following situations would it be the most difficult to keep the water in a river flowing?
A) as it passes from one city to another city in the same county B) as it passes from one county to another county in the same state C) as it passes from one state to another state in the same country D) as it passes from one country to another country
Refer to Figure 13.3. If exchange rates are floating, fiscal policy designed to reduce the federal deficit and the typical Fed response to the change in inflation caused by the fiscal policy would best be represented by a movement from ________ in
panel (a) and a corresponding movement from ________ in panel (b). A) point A to point D; point X to point Y B) point C to point B; point X to point Y C) point D to point A; point Y to point X D) point B to point C; point Y to point X