Refer to Table 9-7
a. Which country has an absolute advantage in the production of handbags and jackets?
b. Which country has a comparative advantage in the production of handbags?
c. Which country has a comparative advantage in the production of jackets?
a. Thailand has an absolute advantage in the production of both products.
b. Cambodia has a comparative advantage in the production of handbags.
c. Thailand has a comparative advantage in the production of jackets.
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Last year, the real per capita GDP of Country A was $32,000 and that of Country B was $25,000. Based on this information, what can we conclude about the standard of living for a typical inhabitant in each of these countries?
a. The standards of living for the typical inhabitants of these two countries cannot be determined without more data. b. The standards of living for the typical inhabitants of these two countries are roughly equivalent. c. A typical inhabitant of Country B has a higher standard of living than a typical inhabitant of Country A. d. A typical inhabitant of Country A has a higher standard of living than a typical inhabitant of Country B.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. Suppose that Dawn initially proposed $5 million while Terry proposed $9 million. Given the distribution of voters' preferences, Dawn can increase her chance of being elected by proposing:
A. a greater budget toward the median budget. B. a greater budget than $9 million. C. a smaller budget than $5 million. D. None of these
If the price of tables sold by All-Oak Table Co. increases from $400 to $500, then the:
A. demand for labor by All-Oak Table Co. decreases. B. demand for labor by All-Oak Table Co. increases. C. supply of labor to All-Oak Table Co. increases. D. supply of labor to All-Oak Table Co. decreases.