The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. The United States has a comparative advantage in the production of Labor hours to make:In the United StatesIn France1 gallon of wine4.001.001 pound of cheese1.002.00
A. both goods.
B. neither cheese nor wine.
C. only cheese.
D. only wine.
Answer: C
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According to the life-cycle hypothesis, if the average person expects to live another 48 years, the short-run MPC out of unexpected changes in income is
A) 0.52. B) 0.48. C) 0.9792. D) 0.0208.
An increase in the nominal interest rate increases the quantity of credit card services because
A) bank profits go up. B) of intertemporal substitution. C) the opportunity cost of making transactions with money has risen. D) the substitution effect is greater than the income effect.
During the antebellum period, the South exported more to England than it imported. This Southern trade surplus with England benefited whom?
(a) The South (b) The North (c) England (d) All of the above
The marginal propensity to consume (MPC) is the change in consumption divided by the change in income
a. True b. False Indicate whether the statement is true or false