Critically evaluate the following statement. "If a country can produce a good using fewer inputs than other country then that means that country enjoys a comparative advantage."
What will be an ideal response?
This is not true. What is being described here is an absolute advantage. In order to have a comparative advantage all that is needed is that a country produce the good with a lower opportunity cost but not necessarily with fewer inputs.
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The most important derivative instruments are
A) futures, options, and swaps. B) common and preferred stocks. C) corporate bonds. D) government bonds.
If the average interval between firms' price adjustments is relatively short
A) an increase in aggregate demand will cause a relatively short-lived increase in real GDP. B) an increase in aggregate demand will cause a relatively long-lived increase in real GDP. C) a reduction in aggregate demand will cause a relatively long-lived reduction in real GDP. D) both B and C