If Mexico has a comparative advantage in oil compared to the U.S., it means that the opportunity cost of producing oil in Mexico is
a. relatively high
b. relatively low
c. zero
d. infinite
e. higher than in the U.S.
B
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Entrepreneurs contribute to increased average labor productivity in each of the following ways except by:
A. developing new products. B. introducing new production methods. C. assigning workers to jobs. D. implementing new technological processes.
Which of the following would be a topic considered in the field of macroeconomics?
a. Studying the amazing recent growth of the Chinese economy. b. Studying the movement of US manufacturing firms to China. c. Studying the differences in wages between menand women in the United States. d. Studying the effect of rent controls on the housing market in New York City. e. Studying the impact of environmental regulations on the well-being of human populations.
The value of output was $100 billion in Northland and $200 billion in Southland. The population of Northland was 50 million and the population of Southland was 30 million. There were 30 million employed workers in Northland and 20 million employed workers in Southland.
A. Northland; the same in both countries B. Northland; higher in Northland C. Southland; higher in Southland D. Southland; the same in both countries
Suppose a given basket of goods and services costs 15 dollars in the United States and 14,250 won in Korea. If the exchange rate is 900 won per dollar, purchasing power parity implies that the:
A. exchange rate has attained its long run equilibrium value. B. won must appreciate to restore purchasing power parity. C. dollar must depreciate to restore purchasing power parity. D. dollar must appreciate to restore purchasing power parity.