Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product
What will be an ideal response?
A country can have an absolute advantage without having a comparative advantage in the production of a product, because having an absolute advantage means a country can produce more of the product than another country while using the same amount of resources, and having a comparative advantage means that the country can produce the product at a lower opportunity cost than another country. Having a comparative advantage is not required to have an absolute advantage.
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The possible measuring units for capital productivity could be units/$, Kg/Rial, Barrels/$, etc.
a. true b. false
The Fed is most likely to pursue
A. Numerous increases in the discount rate to tighten the money supply quickly. B. Frequent changes in marginal tax rates. C. Frequent adjustment of the reserve requirement. D. Use of open market operations as the primary mechanism to change reserves.