The terms of trade
a. equal the equilibrium price in a competitive market
b. equal a nation's imports minus its exports
c. determine whether specialization according to comparative advantage is economically rational
d. are equal to 1.0 in market equilibrium
e. determine how the gains from international trade are distributed among countries
E
Economics
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The difference between voluntary and involuntary unemployment is that:
a. involuntary unemployment exists when wages are high. b. voluntary unemployment exists in equilibrium. c. voluntary unemployment falls as wages rise. d. both b and c. e. all of the above.
Economics
If a 10% decrease in the price of a good leads to a 20% increase in the quantity demanded, then what is the price elasticity of demand?
A. ½. B. 2. C. 20. D. 10.
Economics