Which of the following is likely to be most capital-intensive?
A. Production of clothing in rural China.
B. Farming in developing countries.
C. Oil refining in the United States.
D. None of the choices are correct.
Answer: C
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The following graph depicts demand.
The slope of the demand curve (ignoring the negative sign) is:
A. 1. B. 2. C. 0.5. D. 1.5.
Do policies that alter the distribution of income also entail a change in property rights?
A) It is impossible to tell because of the uncertainty such policies create. B) Not if they are confined to changing relative prices. C) Not if they redistribute income without confiscating anyone's wealth. D) They do so necessarily.
The tendency for people to enter into agreements in which they can use their private information to their own advantage and to the disadvantage of the less informed party is known as
A) adverse selection B) moral hazard. C) the market for oranges. D) a signal.
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 now possesses the absolute advantage in the production of both goods. B. Country B now possesses the absolute advantage in tablets only. C. Country B now has the comparative advantage in iPod production. D. Country B has no need to trade now.