Which economic question does the decision to give all of the butter the economy produces to the homeless answer?
a. What to produce?
b. How to produce?
c. For whom to produce?
d. Who has a comparative advantage in butter production?
e. Who has an absolute advantage in butter production?
C
You might also like to view...
Sometimes a change in the real effective multilateral exchange rate has the opposite result from what one would expect. One explanation may be:
a. that buying habits are very strong and firms and consumers continue their behavior despite large changes in prices of imports. b. that price changes do not bring about immediate responses in import or export volume because of contracts, or firms' difficulty in changing suppliers quickly. c. that the theory is fundamentally flawed and does not predict well. d. that there are other factors we are not considering that affect the trade balance.
Instrumental Variables regression uses instruments to
A) establish the Mozart Effect. B) increase the regression R2. C) eliminate serial correlation. D) isolate movements in X that are uncorrelated with u.