Country A would have an absolute advantage compared to Country B in the production of corn if
A. Country A uses fewer resources to produce corn than Country B does.
B. the demand for corn is higher in Country A than in Country B.
C. corn can be produced at lower cost in terms of other goods than it could be in Country B.
D. corn sells for a higher price in Country A than in Country B.
Answer: A
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A monopsonistic employer will pay a wage rate
A) less than the labor's MRP. B) greater than the labor's MRP. C) equal to the labor's MRP. D) equal to MFC.
A real variable is
a. measured in terms of after-tax dollars b. measured in terms of dollars and not foreign currency c. measured in nominal terms d. measured in terms of current dollars e. measured in terms of purchasing power
Government debt is not a problem as long as the:
a. Assets a government purchases increase national productivity by an amount less than the private sector. b. Government spends the funds on consumption goods rather than investment goods, because consumption goods do not have to be amortized. c. Government can borrow from foreigners. d. Government can print money and repay the debt any time it wants. e. Nation's equity level is rising.
Which of the following is true?
A. The production possibilities curve indicates that it will be impossible to expand total output with the passage of time. B. As long as resources are scarce, output cannot be increased. C. The size of the economic pie is fixed, and therefore, if one individual has more income, others must have less. D. Over time, the output of goods and services can be increased through human ingenuity and discovery of better ways of doing things.