In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an eight-hour day, Bob can produce either 8 loaves of bread or 8 pounds of butter. Andy has a comparative advantage in the production of
A) bread, while Bob has a comparative advantage in the production of butter.
B) butter, while Bob has a comparative advantage in the production of bread.
C) bread and neither has a comparative advantage in the production of butter.
D) both bread and butter.
A
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Providing a good would likely be most difficult when the project involves assembling
A) a few parcels of contiguous land. B) a few parcels of noncontiguous land. C) many parcels of contiguous land. D) many parcels of noncontiguous land.
Medicaid and food stamps are
a. available only to the elderly. b. forms of in-kind assistance. c. forms of cash assistance. d. transfer payments.
Foreign aid:
A. provided by developed countries to developing countries represents about 10 percent of the GDP of developed countries. B. is an important source of funding for investment in most developing countries. C. does not contribute much to domestic investment in most developing countries. D. is largely wasted in most developing countries because it comes with no strings attached.
The idea that investment in comprehensive education in developing countries leads to permanent increases in the rate of technological progress is an example of:
A. increasing economic inequality. B. capital deepening. C. new growth theory. D. a trade-off between human capital and technology.