Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesCanadaComputers810Bicycles42Refer to the above table. If opportunity costs are constant, then the United States and Canada will produce goods in which they have a comparative advantage and trade at a rate of exchange of
A. 6 computers for 1 bicycle.
B. 0.1 computer for 1 bicycle.
C. 4 computers for 1 bicycle.
D. 1 computer for 1 bicycle.
Answer: C
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Orchards provide services to beekeepers because the bees use the pollen to make honey. This is an example of
A) a positive externality, and too many orchards exist in society. B) a positive externality, and too few orchards exist in society. C) a negative externality, and too many orchards exist in society. D) a negative externality, and too few orchards exist in society.
The tendency of the prices of identical baskets of goods across countries to converge: a. Is stronger to the extent the countries compared have substantial tariffs on imported goods
b. Is weaker, the higher the cost of transporting the goods between countries. c. Is stronger for goods and services not traded internationally. d. Would tend to become weaker when countries eliminated quotas on imports of the goods in the baskets.
A typical neoclassical aggregate supply (AS) curve ______________ and a typical neoclassical Phillips curve __________________.
a. slopes upward; slopes downward b. is vertical; is vertical c. is vertical; slopes downward d. slopes upward; is vertical