An example of an acquired comparative advantage is
A. United States consumers buying television sets produced in Japan because Japanese companies have a reputation for producing a higher-quality TV than those produced in the United States.
B. the United States producing more agricultural products than other countries because land is more abundant in the United States than in other countries.
C. the United States purchasing coconuts from other countries, because they cannot be produced in the United States.
D. United States companies selling to other countries chemical products that cannot be sold in the United States.
Answer: A
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Indicate whether the statement is true or false
Grocery stores often replace
A) low profit margin goods with services. B) low profit margin goods with high profit margin goods. C) high profit margin goods with low profit margin goods. D) goods with one type of elasticity with goods of similar elasticities.
Some economists say that "full employment" exists in an economy when:
a. cyclical unemployment is 2 percent. b. cyclical unemployment is 4 to 6 percent. c. frictional unemployment is zero. d. the unemployment rate is 4 to 7 percent. e. the natural unemployment rate is zero.
Exhibit 13-4: Market for Healthy Hands Lotion
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In Exhibit 13-4, the makers of Healthy Hands Lotion discovered that the lotion can cause skin reactions, but it doesn't inform the buyers. A news investigation reveals the reactions. When the market reacts to this new information, the price will
A. increase from $4.00 to $5.00 and the quantity will increase from 40 to 50 units. B. decrease from $5.00 to $4.00 and the quantity will decrease from 50 to 40 units. C. increase from $4.00 to $6.00 and the quantity will remain constant at 40 units. D. decrease from $6.00 to $5.00 and the quantity will increase from 40 to 50 units.