Suppose Japan has a comparative advantage over Canada in the production of DVDs. This means that Japan:
A. needs fewer resources to produce DVDS than does Canada.
B. has better technology for producing DVDs than does Canada.
C. has a lower opportunity cost of DVD production than does Canada.
D. can produce more DVDs in a given period of time than can Canada.
Answer: C
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Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a surge in household wealth will result in a movement from point ________ to point ________
A) A; B B) B; A C) A; C D) A; D
When the private costs and the social costs are NOT the same, there is a(n)
A) externality. B) internality. C) public good. D) monopoly.
The demand for labor determines the
A. Minimum wage rate. B. Total number of people who want to work. C. Willingness and ability of people to work at alternative wage rates. D. Number of available jobs.
In 2007, the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are
What will be an ideal response?