Country A has a comparative advantage compared to Country B in the production of shoes if
A. Country A can produce shoes at a lower cost in terms of other goods than Country B can.
B. Country A can produce shoes at a lower monetary cost than Country B can.
C. Country A can produce shoes using fewer resources than Country B can.
D. the demand for shoes is higher in Country A than in Country B.
Answer: A
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When the wage is above the equilibrium level,
a. the labor market is functioning more efficiently than it otherwise would function. b. there is a shortage of labor. c. the quantity of labor supplied exceeds the quantity of labor demanded. d. job search is the primary explanation for the unemployment that is observed.
Consider an unregulated monopoly in Figure 13.2. If a second firm enters the market, the demand curve facing the first firm will:
A. shift to the right. B. shift to the left. C. remain the same. D. There is insufficient information.
Median household income in the United States has increased from $38,771 in 1967 to $51,017 in 2012. Based only on this fact, we can conclude that
A) Inequality is increasing in the United States. B) Inequality is decreasing in the United States. C) Inequality is not changing in the United States. D) We cannot conclude anything about inequality in the United States without more information.
What would be the output combination for two products A and B on the production possibility frontier, if a country uses its entire resources for producing A?
a. A - Maximum; B - Zero b. A- Maximum, B - Maximum c. A - Zero, B - Maximum d. A - Zero, B - Minimum