Use the following table showing maximum-output alternatives for Brazil and Poland to answer the next question.CountryWineMachinesBrazil3010Poland1010If the two nations open up trade with each other, then
A. Brazil will not gain from specializing and trading, but Poland will gain.
B. Brazil will specialize in producing machines and import wine.
C. Poland will specialize in producing machines and import wine.
D. Poland will export wine.
Answer: C
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The above figure shows the U.S. market for 1 carat diamonds. With free trade, the United States produces ________ diamonds and imports ________ diamonds
A) 300,000; 600,000 B) 0; 900,000 C) 100,000; 900,000 D) 100,000; 800,000 E) 500,000; 400,000
Between 1891 and 1896,
a. both "external" and "internal" gold drains plagued the U.S. Treasury. b. Americans rushed to exchange notes for gold. c. Treasury reserves of gold dipped below the minimum reserve of $100 million. d. increases in commodity exports ultimately bolstered the gold reserves of the Treasury. e. All of the above.
Average variable costs equal
A) total variable costs divided by marginal costs. B) total variable costs divided by output. C) the change in marginal costs from producing another unit of output. D) output divided by the change in total costs.
The theory of comparative advantage is credited to
A. Adam Smith. B. Milton Friedman. C. John Maynard Keynes. D. David Ricardo.