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1. A country has a comparative advantage if it has a lower ________ cost of producing a good 2. The terms of trade is the rate at which two goods can be ________ for one another. 3. Suppose a country has

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1. Arrow up or down: According to the law of supply, an increase in price ___ the quantity supplied. 2. From the following list, choose the variables that are held fixed when drawing a market supply curve: The price of

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Dumping is selling a product in a foreign market at a lower price than a firms own domestic market. You might think that this would require a comparison of actual prices charged in home markets compared to foreign markets. But that is

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1. Which of the following are not included in GDP? a. Leisure time b. Sales of new cars c. Strawberries sold in a grocery store d. Economics textbooks sold in the bookstore 2. Men s reported happiness has increased relative to women’s

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1. The date that a recession begins is called the__________. 2. Since World War II, the United States has experienced seven recessions. ______ (True/False) 3. The ______ marks the date that ends a recession and output starts to increase again. 4. The

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6. Using a New Base Year to Calculate Real GDP and Inflation. Repeat Exercise 4.5 but use prices from 2012. 7. Understanding the Relationship between Real and Nominal GDP in a Figure. In Figure 5.5 the base year is 2000. Explain why

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1. What do we add to GDP to reach GNP? a. Net income earned abroad by U.S. households b. Personal income c. Depreciation d. Net exports 2. What is the largest component of national income? a. Compensation of employees (wages and benefits)

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1. Which of the following is not a component of GDP? a. Consumption b. Investment c. Producer Price Index d. Government purchases e. Net exports 2. What part of government spending is excluded from GDP because it does not correspond to goods

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1. The circular flow describes the process by which GDP generates____, which is spent on goods and services. 2. Labor and capital are exchanged in _________markets. 3. Which government department produces the National Income and Product Accounts? a. The Department of Education

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Two economists, David Blanch flower of Dartmouth College and Andrew Oswald of Warwick University in the United Kingdom, have systematically analyzed surveys over a nearly 30-year period that ask individuals to describe themselves as happy, pretty happy, or not too happy. The