If one nation can produce greater quantities of a good than another nation, it has a(n)
a. comparative advantage in producing that good
b. absolute advantage in producing that good.
c. absolute advantage, but a comparative disadvantage in producing that good.
d. comparative advantage, but an absolute disadvantage in producing that good.
b
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Last year, Joan bought 50 pounds of hamburger when her household income was $40,000. This year, her household income was only $30,000 and Joan bought 60 pounds of hamburger
Holding everything else constant, Joan's income elasticity of demand for hamburger is A) negative, so Joan considers hamburger to be an inferior good. B) negative, so Joan considers hamburger to be a normal good. C) positive, so Joan considers hamburger to be an inferior good. D) positive, so Joan considers hamburger to be a normal good and a necessity.
Darin grows and sells marijuana to Jennifer. Thomas is an organic farmer who sells broccoli to Jennifer. Marijuana is an illegal good and broccoli is a legal good. Assume that if Jennifer marries either, they give her what they used to sell her. Which of the following statements is consistent with the way GDP is computed?
a. GDP will fall if Jennifer marries either Darin or Thomas. b. GDP will fall if Jennifer marries Darin but not if she marries Thomas. c. GDP will fall if Jennifer marries Thomas but not if she marries Darin. d. GDP remains the same whether Jennifer marries Darin or Thomas.
Suppose the dollar is subject to a floating exchange rate system and that R is the number of dollars per unit of foreign exchange. If R increases, then the dollar
A) depreciates. B) appreciates. C) is devalued. D) is revalued.
Which of the following is one reason for the decline in aggregate demand that led to the recession of 2007-2009?
A) falling oil prices B) increases in housing prices C) the financial crisis D) a decline in government spending