Refer to the tables below. Assume that prior to specialization and trade Germany and the United States both choose production possibility C. Now if each specializes according to its comparative advantage, the resulting gains from specialization and trade will be:
Autos and chemicals are in million of units in the following production possibilities tables:
A. 8 million units of autos
B. 6 million units of autos
C. 6 million units of autos and 8 million units of chemicals
D. 8 million units of autos and 6 million units of chemicals
B. 6 million units of autos
You might also like to view...
Refer to the scenario above. The optimal strategy for Rachel is to bid a price:
A) above her willingness to pay. B) equal to half the amount she is willing to pay. C) equal to 5/6 times her willingness to pay. D) up to her willingness to pay.
Everything else held constant, a decrease in the required reserve ratio on checkable deposits causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
Rising healthcare costs are attributable to
A) people living longer and desiring more care. B) reliance on expensive technology to support and prolong life. C) third-party financing of healthcare costs. D) all of the above.
Refer to the graph above. If Canadian investors buy more U.S. financial and real assets, then:
A. The demand curve will shift left
B. The demand curve will shift right
C. The supply curve will shift left
D. The supply curve will shift right