Costa Rica is a leading exporter of bananas. What explains the comparative advantage of this country in banana production?
A) investment by multinational firms such as Chiquita Brands International and the Dole Food Company
B) climate and soil conditions in Costa Rica which are well-suited for banana production
C) positive externalities
D) a large supply of unskilled labor
B
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In terms of unemployment, hysteresis models try to explain why
a. cyclical unemployment is always present. b. structural unemployment cannot be eradicated. c. high unemployment persists even after its initial cause is long past. d. frictional unemployment is the cause of hysteresis.
A monopolist produces ________ than a perfectly competitive firm, and charges a ________ price
a. less; higher b. less; lower c. more; higher d. more; lower
A barter economy is one in which:
A. money serves as a medium of exchange. B. only precious metals are accepted as money. C. goods are traded directly for other goods. D. paper money is backed by gold.
Money serves as a standard of value, which is another way of saying that money functions as
A. a unit of accounting. B. standard of deferred payment. C. a medium of exchange. D. an opportunity cost of investment.