Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. We can say:
A. Country B has no need to trade now.
B. Country B now possesses the absolute advantage in the production of both goods.
C. Country B now has the comparative advantage in iPod production.
D. Country B now possesses the absolute advantage in tablets only.
Answer: B
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The reduction of the inflation rate is called
A) deflation. B) disinflation. C) unflation. D) reflation.
In 1938, another Agricultural Adjustment Act was passed. The error of the 1933 Act was now avoided. What had that error been?
(a) Acreage allotments (b) Combining provisions for conservation with subsidies (c) Imposition of specific taxes on food processors (d) Excessive delegation of power
If the average variable cost of the fifth hat is $30, then the total variable cost of five hats is
A) $6. B) $150. C) $1800. D) indeterminate from this information.
Which of the following is a sign of a well-functioning labor market?
A. a constant unemployment rate B. equal pay for all workers C. a high degree of labor mobility (job losses and job gains) D. All workers have a college education. E. equal pay in all regions