According to the Heckscher-Ohlin theory, comparative advantage is based on:
a. labor productivity differences.
b. product life cycles.
c. the availability of skilled resources.
d. consumer tastes and preferences.
e. the relative abundance of the factors of production.
e
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If nominal GDP is $7,700 billion and M1 is $1,000 billion, then velocity is
a. 10.7. b. 7.7. c. 7.1. d. 7.0.
Which of the following is an illustration of the law of increasing opportunity costs?
A) As more cars are produced, the opportunity cost of each additional car is greater than for the preceding unit. B) As more cars are produced, the opportunity cost of each additional car is less than for the preceding unit. C) As more cars are produced, the opportunity cost of each additional car is the same as for the preceding unit. D) People pay lower prices for cars the higher the costs of producing cars.