The production possibilities curves illustrated in Figure 35.2 reveal that
A. The United States has no comparative advantage.
B. The United States has an absolute advantage in both goods.
C. Mexico has a comparative advantage in baseballs.
D. Mexico has no comparative advantage.
Answer: B
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In the figure above, what is Gap's excess capacity?
A) 32 jackets per day B) zero C) 4 jackets per day D) 132 jackets per day
It is impossible for both nations to gain when trading with one other
a. True b. False Indicate whether the statement is true or false
Evidence from a 1988 study of the market for professional basketball players
a. found no evidence of consumer-driven wage discrimination. b. found some evidence of consumer-driven wage discrimination. c. found that measurement of marginal productivity was very difficult for basketball players. d. indicated that sports with strong player associations are unlikely to experience wage discrimination.
Refer to the information provided in Table 14.4 below to answer the question that follows. Table 14.4B's Strategy ?Raise PriceDon't Raise Price?RaiseA's profit $6,000A's profit $20,000?PriceB's profit $6,000B's profit $30,000A's Strategy????Don'tA's profit $30,000A's profit $10,000?RaiseB's profit $20,000B's profit $10,000Refer to Table 14.4. The Nash equilibrium in the game is
A. (Raise Price, Don't Raise Price). B. (Don't Raise Price, Raise Price). C. (Don't Raise Price, Don't Raise Price). D. Both A and B are correct.