Assume that Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives up 7 automobiles for each ton of coffee it produces.
A) Brazil has a comparative advantage in automobile production and should specialize in coffee.
B) Brazil has a comparative advantage in coffee production and should specialize in the production of automobiles.
C) Brazil has a comparative advantage in coffee production and should specialize in coffee production.
D) Brazil has a comparative advantage in automobile production and should specialize in automobile production.
Ans: C) Brazil has a comparative advantage in coffee production and should specialize in coffee production.
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A) 100 percent higher than nonunion wages. B) less than nonunion wages. C) 10-25 percent higher than nonunion wages. D) 66 percent higher than nonunion wages. E) equal to nonunion wages.
An increase in the real interest rate, all other things held constant, will cause a country's ________ to ________
A) current consumption: increase B) current consumption: decrease C) terms of trade; improve D) terms of trade; worsen E) welfare level; improve
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a. the per capita income of high-income industrial countries declined. b. the fastest growing economies in the world were LDCs. c. almost all LDCs grew more rapidly than the high-income industrial economies. d. most of the countries with rapid growth rates during the last two decades were located in South America.
Standardized tests are used in efforts to make schools more accountable.
A. True B. False C. Uncertain