Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. There is no benefit to the United States as a result of trading tomatoes or machinery with Mexico.
B. Mexico does not have an absolute advantage in the production of either good.
C. Mexico has a comparative advantage in the production of tomatoes.
D. The United States has a comparative advantage in the production of machinery.
Answer: B
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Which of the following contributes to a current account surplus for a country?
A) having tourists visit the country B) importing textiles C) having foreigners buy government securities from the country's government D) importing financial services
The principal distinction between positive analysis and normative analysis is that
A) positive analysis is useful and normative analysis is not useful. B) positive analysis is optimistic and normative analysis is neutral. C) economists always agree on the conclusions of positive analysis but could disagree on the conclusions of normative analysis. D) positive analysis tells us "what is," but normative analysis tells us "what ought to be."
Which of the following federal agencies is NOT engaged in economic regulation?
A) the Federal Reserve B) Federal Aviation Administration C) Food and Drug Administration D) Federal Deposit Insurance Corporation
The person most closely associated with a conservative theory of poverty is
A. Charles Murray. B. William Julius Wilson. C. Frances Fox Piven. D. Barbara Ehrenreich.