Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. Tom has a comparative advantage in:
a. hunting birds
b. fishing.
c. both hunting birds and fishing
d. neither hunting birds or fishing.
a
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Imperfect asset substitutability exists
A) when it is possible for the expected returns on two assets to be different. B) when the expected returns on two assets are the same. C) only when one asset is foreign and the other is domestic. D) when there is risk in the foreign exchange market. E) when assets are liquid.
The federal minimum wage automatically increases every year for inflation
Indicate whether the statement is true or false
Capital widening refers to an increase in the amount of capital per worker, either human capital per worker, in the form of higher education or skills, or physical capital per worker.
Select whether the statement is true or false. A. True B. False
Suppose that the consumer price index has risen from 100 to 200. From this information we can conclude that
a) each person's real income was cut in half b) consumer incomes are doubled c) the prices in an average consumer's basket have doubled d) all consumer good prices are doubled e) all prices in the economy are doubled