BNAD 301 Exam Set with Questions and Answers

BNAD 301 Exam Set with Questions and Answers The Federal Reserve's Open Market Committee: . (A) Regulates the banks. . (B) Sets exchange rate targets. . (C) Does economic forecasting. . (D) Decides how much debt the U.S. Treasury should sell. . (E) Manages the Federal Reserve's purchase and sale of bonds. ANSWER e Suppose it costs the U.S. $1 to produce a pound of steel and $2 to produce a pound of aluminum. Suppose it costs Canada $3 to produce a pound of steel. Then we say that Canada has a comparative advantage in producing aluminum if its cost of producing one pound is less than: . (A) $1. . (B) $2. . (C) $3. . (D) $6. . (E) In this situation, Canada never has a comparative advantage in producing aluminum. ANSWER d The arguments for free trade typically emphasize that it helps ______ , while the arguments against free typically emphasize that it hurts ______. . (A) Fairness; fairness. . (B) Fairness; efficiency. . (C) Efficiency; fairness.