The United States produces both automobiles and computers more efficiently than Mexico. Nevertheless, it is possible that both nations would benefit from trade in these items. The reason for this is
a. the law of comparative advantage.
b. the inflation-unemployment trade-off.
c. externalities.
d. the cost disease of personal services.
e. attempts to repeal the law of supply and demand.
a
Economics
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To ensure that the fundamental identity of national income accounting holds, changes in inventories are
A) treated as part of expenditure. B) treated as part of saving. C) ignored. D) counted as consumption.
Economics
Bonds are a safer form of investment because
a. full bond payments are made before stockholders receive any dividends b. they are guaranteed by the government c. they are guaranteed by the investment industry d. a stockholder's personal assets can be used to pay the bondholder's interest e. bondholders can elect the board of directors
Economics