1) Which of the following statements is the best
description of absolute advantage?
a) Each nation should produce these goods that it can
produce more efficiently and effectively than other nations, and
buy the goods it cannot produce as efficiently as the nations that
can.
b) A nation should produce those goods for which
domestic demand is comparatively strong, and should import those
goods for which domestic demand is comparatively weak.
c) The best way for a nation to ensure full employment
is to be completely self-sufficient and not at all reliant on
trading with other nations.
d) The nation that has the largest reserves of gold
and other highly valued natural resources will enjoy a position of
comparative advantage in trade relationships.
2) Dividends on preferred stock are
a) guaranteed, except in the event of
bankruptcy
b) normally fixed, if and when dividends are
paid
c) always greater than dividends on common
stock
d) paid after common stockholders receive their
dividends
1) Which of the following statements is the best description of absolute advantage? a) Each nation...
According to the principle of comparative advantage, a nation should specialize in producing those products which other nations are unable to produce are hardest to protect through trade barriers it can produce at the lower opportunity cost than its trading partner use the scarcest resources
B) Outuums C) Retailing D) Exporting 41. A nation has a in the production of a good if it can produce that good more effectively or efficiently than it can produce other goods. A) supreme advantage B) primary efficiency c) qualified advantage D) comparative advantage 42. Countries with a low standard of living and quality of life are called: A) industrialized nations. B) Well-endowed societies. c) developing countries. D) opportunities of free trade. 43. Which theory states that a nation...
[2] A good or service produced in Country A and sold in Country B is: A) an import to Country B. B) an export from Country B. C) a secondary purchase for Country B. D) an unaccounted good or service for Country B. [3] Specialization: A) increases dependence on markets and trade. B) permits greater levels of production than would be attained without it. C) both of the above. D) none of the above. [4] You would expect an increase...
26. Which of the following organizations were established to promote freer trade among member nations (check all that apply)2(2) SEATO NAFTA European Union NATo 27. Which of the following will probably increase total expenditures for U.S. goods and services?(2) The Federal Reserve buys $5 billion in U.S. bonds The Federal income tax is raised by 5% to help reduce the deficit The U.S. dollar is devalued (i.e., other currencies such as the rupee, will buy more dollars) The U.S. government...
12. Refer to the table below. According to the table, Julia has the absolute advantage in: Time to make a pie Time to make a cake Martha: 60 minutes 80 minutes Julia: 50 minutes 60 minutes A) pies B) both pies and cakes C) neither pies nor cakes D) cakes 13. Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12...
Problem 25-09 (algo) An economy with zero net exports is described below: C = 30 + 0.9 (Y-T) P = 100 G = 150 NX = 0 T = 180 The multiplier in this economy is 10. a. Find short-run equilibrium output. Instructions: Enter your responses as whole numbers. Short-run equilibrium output: b. Economic recovery abroad increases the demand for the country's exports; as a result, NX rises to 25. Short-run equilibrium output (Click to select) to . C. Assume...
QUESTION 1 Which of the following statements is true: There are more tertiary goods traded than primary goods There are more tertiary goods traded than secondary goods There are fewer secondary goods traded than primary goods There are more secondary goods traded than tertiary goods QUESTION 2 Non-tariff barriers to trade include all but the following: Local content requirements Government subsidies Taxes on imports ...
Trade Theories, a Historical Approach Free trade refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country. The economic arguments surrounding the benefits and costs of free trade in goods and services are not abstract academic ones. International trade theory has shaped the economic policy of many nations for the past 50 years. The textbook reviews...
Which of the following is the best definition of an information content effect? Question 5 options: The market's reaction to a change in corporate dividend payout. Idea that individual investors can undo corporate dividend policy by reinvesting dividends or selling shares of stock. Date two business days before the date of record, establishing those individuals entitled to a dividend. Payouts made out of a firm's earnings to its owners, either in the form of cash or stock. Payment made by...
No need to explain in detail. I just want to check my answer. But please provide me a formula. 1. The principle of comparative advantage asserts that a. not all countries can benefit from trade with other countries. b. the world price of a good will prevail in all countries, regardless of whether those countries allow international trade in that good. c. countries can become better off by exporting goods, but they cannot become better off by importing goods. d....