A Country That Has Relatively Large Amounts of a Particular

question 52

Multiple Choice

A country that has relatively large amounts of a particular resource at its disposal

• A)will tend to have an absolute advantage
• B)will trade the resource for some good in which that country has an absolute advantage
• C)will tend to have a comparative advantage in goods that make heavy use of that resource
• D)will trade the resource for some good in which that country has a comparative advantage
• E)will tend to have a low exchange rate

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Definitions:

Short-Run Phillips

A concept describing the inverse relationship between unemployment and inflation in the short run.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a specific period, typically measured annually.

Money Supply

The complete sum of financial resources present within an economy at a given moment.

Growth Rate

The rate at which a country's economy or a specific industry or company's revenue increases over a specific time period.