Given freedom of movement for both goods and resources. If Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
What will be an ideal response?
Florida has a comparative advantage in producing oranges.
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Offshore banking can take place at which institution?
A) agency office only B) subsidiary bank only C) foreign bank only D) subsidiary bank and foreign bank E) agency office, subsidiary bank, and foreign bank
Suppose in India, one unit of labor can produce 330 pounds of rice or 110 shirts in a year. In China, one unit of labor can either produce 400 pounds of rice or 200 shirts in a year. Which of the following statements is true?
a. India has a comparative advantage in the production of rice. b. China has a comparative advantage in the production of rice. c. India has an absolute advantage in the production of shirts. d. India has an absolute advantage in the production of rice.
Land used to grow alfalfa could also be used to grow hay. Which of the following is true when the farmer plants hay and the market price of alfalfa rises?
a. The opportunity cost of producing hay decreases. b. The opportunity cost of producing hay increases. c. There will be no change in the opportunity cost of producing hay. d. The opportunity cost of producing alfalfa increases.
Suppose you observe an increase in the equilibrium price of coffee and a decrease in the equilibrium quantity of coffee. Of the options listed below, this is most consistent with:
A. an increase in the cost of producing coffee. B. a decrease in consumer income assuming coffee is a normal good. C. an increase in consumer income assuming coffee is a normal good. D. a decrease in the cost of producing coffee.