When households hold money (currency) for unplanned expenditures and emergencies, it is called

Select one:

a.the demand for "hot" money.

b.the transactions demand for money.

c.the speculative demand for money.

d.the precautionary demand for money.

When countries specialize in producing goods for which they have a comparative advantage and then trade freely, the result is

Select one:

every industry is better off

reduces output

gains in production costs

greater worldwide consumption

The definition of Absolute Advantage

Select one:

a.one country can produce all goods and services cheaper than another country

b.one country can produce more of a single good or service than another country

c.the ability of a country to produce its own goods and services without having to enter into trade

d.one country can produce more of goods and services with equal amount of resources than another country.