The "rules of the game" under the gold standard can best be described as which of the following:
A) selling domestic assets in a deficit and buying assets in a surplus.
B) slowing down the automatic adjustments processes inherent in the gold standard.
C) selling domestic assets in order to accumulate gold.
D) selling foreign assets in a deficit and buying foreign assets in a surplus.
E) selling domestic assets in a surplus.
A
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Comparative advantage indicates that:
a. specialization and exchange will cause trading partners to reduce their joint output. b. a nation can gain from trade even when it is at an absolute disadvantage in producing all goods. c. trade with low-wage countries will pull down the wages of workers in high-wage countries. d. all of these.
In general, economic profits are:
A. greater than accounting profits. B. less than accounting profits. C. the same as accounting profits. D. not comparable to accounting profits.