The nation of Isolani forbids international trade. In Isolani, you can exchange 1 car for 5 motorcycles. In other countries, you can exchange 1 car for 4 motorcycles. These facts indicate that
a. other countries have an absolute advantage, relative to Isolani, in producing cars.
b. Isolani has a comparative advantage, relative to other countries, in producing cars.
c. if Isolani were to allow trade, it would import motorcycles.
d. the world price of motorcycles exceeds the price of motorcycles in Isolani.
d
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Liquidity refers to
A) the number of times a dollar changes hands in the creation of GDP in an economy. B) the number of shares of stock a corporation issues. C) the ease with a stock can be traded for a bond. D) the ease with which a financial security can be traded for cash.
Which of the following can be categorized as a composite currency?
a. Italian lira b. European Currency Unit c. Pound d. Australian dollar e. Danish Krone
Which of the following is an important assumption in the short-run macro model?
a. Government spending depends on income. b. Output does not change. c. Firms do not maintain inventories. d. Investment depends on income. e. Prices do not change.
In 2016 the Bureau of Labor Statistics reported that there were 23.5 million people over age 25 who had no high school degree or its equivalent. Of these 9.7 million were employed and .75 million were unemployed. What were the labor-force participation rate and the unemployment rate for this group?
a. 41.3% and 3.2% b. 41.3% and 7.2% c. 44.5% and 3.2% d. 44.5% and 7.2%