In an open economy, the law of one price implies that
A) the domestic economy may have a comparative advantage in only half the goods it produces.
B) perfect competition holds in all domestic markets.
C) purchasing power parity should hold.
D) the nominal exchange rate should equal one.
C
Economics
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By drawing a demand curve with ________ on the vertical axis and ________ on the horizontal axis, economists assume that the most important determinant of the demand for a good is the ________ of the good
A) quantity; price; quantity B) quantity; price; price C) price; quantity; price D) price; quantity; quantity
Economics
The production function of a firm illustrates the relationship between the amount of labor hired and output
a. True b. False Indicate whether the statement is true or false
Economics