According to the theory of comparative advantage, trade and specialization ________ productivity by ________ opportunity costs.
A. lower; lowering
B. lower; raising
C. raise; lowering
D. raise; raising
Answer: C
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Which of the following is TRUE?
A) When a market price allocates resources, everyone who is able to pay the price gets the resource. B) A command system works well when the lines of authority and responsibility are clear. C) When the government decides how to allocate tax dollars among competing uses, resources are allocated by command. D) When a manager offers everyone in the company the opportunity to win a prize, resources are allocated by a market price.
Which of the following correctly describes the Phillips curve? ?
A. ?A curve showing the inverse relationship between interest rates and the quantity of money demanded. B. ?A curve showing the direct relationship between interest rates and the quantity of money demanded. C. ?A curve showing the direct relationship between the inflation rate and the unemployment rate. D. ?A curve showing the inverse relationship between the inflation rate and the unemployment rate.