Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. For trade to be mutually beneficial for both countries, the terms of trade will be such that 1 ton of soybeans will exchange for
A. Less than 3 computers.
B. Zero computers.
C. More than 3 computers but less than 5.
D. More than 1/5 of a computer but less than 1/3.
Answer: C
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In the table above, in terms of units of pizza, real income is
A) lower in case A than in cases B and C. B) lower in case B than in cases A and C. C) lower in case C than in cases A and B. D) equal in all three cases.
In 1963, the tax rate for those individuals earning in the highest income tax bracket was 91 percent
a. True b. False
Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850 . How much profit would it make?
a. $1850 b. Zero-they would break even c. They would make a loss of $650 d. They would make a loss of $1100
There are fewer farmers in the United States today than 200 years ago because of
a. improvements in farm technology. b. increased government regulations in farming. c. an elastic demand for food. d. environmental programs designed to reduce soil erosion.