Blog

When a tariff is placed on running shoes, the ________ to local businesses and local consumers are likely to be greater in dollar terms than the ________ to the owner of a shoe factory and its workers.

Figure 2-8Figure 2-8 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.Refer to Figure 2-8. Which country has a comparative advantage in the production of coconuts?

In the real world we don’t observe countries completely specializing in the production of goods for which they have a comparative advantage. All of the following are reasons for this except

When net capital flows are positive

Why is the balance of payments always zero?

Figure 18-1Refer to Figure 18-1. Europe experiences an economic boom. Assuming all else remains constant, this would be represented as a movement from

The United States has developed a comparative advantage in digital computers, airliners, and many prescription drugs. The source of its comparative advantage in these products is

Figure 13-1Refer to Figure 13-1. Ceteris paribus, an increase in personal income taxes would be represented by a movement from

Which of the following would be classified as fiscal policy?

Expansionary fiscal policy involves