Refer to Table 9-6. Select the statement that accurately interprets the data in the table
A) Celeste has an absolute advantage in making saddles and spurs.
B) Mateo has an absolute advantage in making saddles and spurs.
C) Neither Mateo nor Celeste has an absolute advantage in making spurs.
D) Neither Mateo nor Celeste has an absolute advantage in making saddles.
C
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
The wealth effect, the interest rate effect, and the international trade effect account for the:
a. positive slope of the short-run aggregate supply curve. b. the shape of the long-run aggregate supply curve. c. positive slope of the aggregate demand curve. d. negative slope of the aggregate demand curve. e. negative slope of the short-run aggregate supply curve.
Refer to Figure 16-1. Suppose the economy is in short-run equilibrium below potential GDP and Congress and the president lower taxes to move the economy back to long-run equilibrium. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to B. B) C to B. C) A to E. D) B to A. E) B to C.
If consumption is at point A, producers will increase output to equal what level?
a. B
b. C
c. D
d. E (Equilibrium)