A.   more variety of goods and services

B.   greater competition

C.   specialization

D.   higher prices

A.   the government should focus on reducing cyclical unemployment

B.   the government should focus on reducing the natural rate of unemployment

C.   the economy will fluctuate around its potential GDP

D.   the government should focus on long term growth

A.   a decrease in interest rates

B.   a decrease in net exports

C.   a decrease in taxes

D.   an increase in government spending

A.   Indonesia has the comparative advantage in producing copper

B.   Malaysia has the comparative advantage in producing fish

C.   Malaysia has an absolute advantage in producing both fish and copper

D.   Indonesia has an absolute advantage in producing both fish and copper

A.   an initial increase in spending,  has no impact on the economy

B.   an initial increase in spending, cycles repeatedly through the economy and has a larger impact than the initial dollar amount spent

C.   an initial decrease in spending, cycles repeatedly through the economy and has a larger impact than the initial dollar amount spent

D.   an initial increase in spending, cycles repeatedly through the economy and has a smaller impact than the initial dollar amount spent

A.   the government can make the economy recover faster

B.   the economy will adjust on its own

C.   fiscal policy is effective in fighting recessions

D.   the government works efficiently

A.   produce a good or service at a lower opportunity cost

B.   produce a good or service at a higher opportunity cost

C.   produce a good or service using fewer resources than another country

D.   produce a good or service using more resources than another country

A.   the economy is past full employment

B.   wages and prices are flexible

C.   the economy is at full employment

D.   wages and prices are sticky

A.   trade creates more jobs

B.   low income countries have high environmental standards

C.   they want nurture infant industries and protect them from foreign competition

D.   competition is beneficial

A.   1 box of cheese = 5 bottles of wine

B.   1 box of cheese = 2 bottles of wine

C.   1 box of cheese = 10 bottles of wine

D.   1 box of cheese = 4 bottles of wine

A.   inflation is too high

B.   wages cannot adjust when the economy slows

C.   wages and prices are flexible

D.   the government is slow to detect a recession

A.   wages and prices are sticky

B.   people are well off and do not need assistance

C.   the government can make the economy recover faster

D.   wages and prices adjust quickly

A.   to have a greater variety of goods and service

B.   to protect domestic jobs

C.   to pay less for goods and services

D.   to decrease domestic jobs

A.   low

B.   rising

C.   high

D.   the same

A.   Italy has the comparative advantage in producing wine

B.   Italy has the comparative advantage in producing cheese

C.   France has the absolute advantage in producing cheese

D.   Italy has the absolute advantage in producing wine

A.   a tariff increases the amount of imports

B.   a tariff raises the world price of a good

C.   a tariff lowers the world price of a good

D.   a tariff reduces tax revenue