Could an increase in the demand for compact cars give an American automobile producer a comparative advantage in their production?
A) No, because comparative advantage depends entirely on productive capabilities.
B) No, because changes in demand can only affect the price of compact cars.
C) Yes, but only if it leads to a change in the techniques of production.
D) Yes, by making compact-car production more profitable.
D
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Joey cuts grass during the summer. He owns one lawn mower. For him, the short run is equal to
A) the amount of time it takes to acquire more customers. B) the amount of time it takes to hire an additional employee. C) the amount of time it takes to hire an additional employee and buy another lawn mower. D) the amount of time it takes to mow one lawn.
Suppose the interest rate is zero and the public expects the price level to fall by 2%. Which of the following statement is true?
A) The value of money falls by 2%. B) Money becomes an interest earning asset; it earns a nominal interest rate of 2%. C) Money becomes an interest earning asset; it earns a real interest rate of 2%. D) Bonds and money will become perfect substitutes since both are non-interest earning assets.
Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00, there will be
A. an excess demand of 4 cheeseburgers. B. an excess supply of 6 cheeseburgers. C. an excess demand of 6 cheeseburgers. D. an excess supply of 3 cheeseburgers.
The Heckscher-Ohlin theorem says that a country is likely to have a comparative advantage in a labor intensive product if it has a large labor supply.
Answer the following statement true (T) or false (F)