The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Kari.
Who has the greatest comparative advantage in rice production?
A. Drew
B. Kari
C. Janna
D. None of them
Answer: B
You might also like to view...
What does the Ricardo-Barro Effect predict?
A) The level of saving in a developed economy will be very low. B) Government budget deficits crowd out private investment. C) Private saving will offset the impact of government borrowing. D) There is no way to explain animal spirits or irrational exuberance. E) Net investment and gross investment will be equal.
Which of the following purported externalities in fact does not distort the allocation of resources? I. An individual's unwillingness to cut his or her own lawn in an otherwise immaculately kept neighborhood. II. Smoke produced by a new firm in an area which raises the costs of other firms. III. A new firm's bidding up skilled wages in an area, thereby raising costs of other firms. IV. An
individual's unwillingness to obtain job training, thereby lowering the total GNP. Possible choices: a. I, III, and IV. b. III and IV. c. III only. d. IV only.
In Singapore, littering fines are strictly enforced. This is an example of a policy that
a. relies on moral codes to reduce the pollution externality. b. relies on the Coase Theorem. c. discriminates against foreigners. d. relies on incentives to reduce the pollution externality.
An increase in the demand for bonds leads to
A) a decrease in the price of bonds, a decrease in the interest rate, and a decrease in aggregate demand. B) an increase in the price of bonds, an increase in the interest rate, and an increase in aggregate demand. C) an increase in the price of bonds, a decrease in the interest rate, and an increase in aggregate demand. D) a decrease in the price of bonds, an increase in the interest rate, and an increase in aggregate demand.