Suppose That Only Two Goods Are Produced in an Economy

question 62

Multiple Choice

Suppose that only two goods are produced in an economy.If a country possesses the comparative advantage in the production of one good then it:

• A) must also possess the comparative advantage in the production of the other good.
• B) must also possess the absolute advantage in the production of that good.
• C) cannot also possess the comparative advantage in the production of the other good.
• D) cannot also possess the absolute advantage in the production of that good.

Distinguish between different types of organizational communication systems.

Recognize the benefits and limitations of meetings in a collaborative environment.

Understand the technologies that facilitate collaboration and shared workspaces.

Comprehend the importance and methods of giving and receiving constructive feedback.

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Definitions:

Required Reserve Ratio

The minimum percentage of deposits that a bank must hold in reserve and not lend out.

Excess Reserves

Funds that banks hold over and above the required reserve ratio set by the central bank, often earning interest.

Checkable Deposits

Bank accounts from which individuals can deposit and withdraw money using checks, ATM transactions, and electronic payments.

Reserve Requirement

The minimum fraction of customer deposits that each bank must hold as reserves, rather than lending out, as mandated by the central bank.