For each pound of salami that Hungary produces, it gives up the opportunity to make 10 bottles of beer. Slovakia gives up the opportunity to produce of 1 pound of salami for every 8 bottles of beer it produces. Which of the following is true about the
comparative advantage between the two countries?
A) Hungary has the comparative advantage in salami.
B) Hungary has the comparative advantage in beer.
C) Slovakia has the comparative advantage in salami and beer.
D) Slovakia has the comparative advantage in beer.
Answer: B
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When the current price of a good is below the equilibrium price:
A. sellers will notice their inventories are growing. B. the price will tend to stay below the equilibrium price. C. buyers have an incentive to offer to pay sellers more than the current price. D. there will be excess supply.
Which of the following is not a government activity that is involved in public finance?
A. Running government-owned enterprises such as hospitals, utilities, and lotteries. B. Redistributing income through various taxes and income-transfer payments. C. Providing public goods and services such as national defense and education. D. Regulating the activities of firms in the financial sector of the economy.
Refer to Figure 28-9. A(n) ________ would be depicted as a movement from A to D to C
A) supply shock, such as rising oil prices, B) implementation of contractionary monetary policy C) increase in short-run aggregate supply D) increase in aggregate demand
One difference between a traveler's check and a demand deposit is that: a. a traveler's check is accepted almost as widely as currency, while a demand deposit has to be converted into cash before making transactions. b. a demand deposit is accepted almost as widely as currency, while a traveler's check has to be converted into cash before making transactions. c. a traveler's check has a longer
expiration date than a demand deposit. d. a demand deposit has a longer expiration date than a traveler's check.