Country Y has fifteen thousand acres of land and forty-five thousand laborers, whereas the Rest of the World has one hundred thousand acres of land and two hundred thousand laborers. These countries produce a labor-intensive Good A, and a land-intensive Good B. When trade opens up between these countries, it can be inferred that Country Y will
A. import both goods.
B. export both goods.
C. export Good B, and import Good A.
D. export Good A, and import Good B.
Answer: D
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Assume that Currency 1 appreciated in terms of Currency 2 . Which of the following statements is always true?
a. Currency 2 appreciated as well in terms of currency 1. b. Currency 2 may have appreciated or depreciated in terms of currency 1. c. Currency 2 depreciated in terms of currency 1. d. Currency 2 appreciated in terms of any currency. e. Currency 2 depreciated in terms of any currency.
Which of the following is the least likely to result from an advance in technology?
A. suppliers offering a larger quantity than before at each given price. B. suppliers offering the same quantity as before at a lower price. C. a leftward shift of the supply curve. D. an increase in supply.
A firm that experiences only constant returns to scale will have a U-shaped long-run average cost curve.
Answer the following statement true (T) or false (F)
There are 10,000 families in a neighborhood that are affected by noise pollution from a local factory. The noise could be reduced if the company spent $5,000 on technological improvements. The company agrees to make these improvements if the affected families contribute the $5,000. Since there are so many families, they fail to come to a resolution to which they will all agree. This outcome is an example of the
A. collective action problem (that arises when there are too many parties involved). B. drop-in-the-bucket problem. C. Coase theorem. D. free-rider problem.