If a country possesses the absolute advantage in the production of one good:
A. it can produce more of that good given the same resources.
B. then it must also possess the absolute advantage in the production of the other good.
C. then it must also possess the comparative advantage in the production of the other good.
D. then it must also possess the comparative advantage in the production of both goods.
Answer: A
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When we compare the graphs for an increase in aggregate demand and the Phillips curve, we see that ______.
a. the impact of inflation on RGDP varies depending on which approach is used
b. neither graph shows the relationship between inflation and unemployment rates
c. neither graph shows how price changes influence RDGP
d. both graphs show the same outcome in different ways
The payment for the use of a resource in an amount higher than the resource's opportunity cost is
A. an irrational economic concept. B. economic rent. C. reinvestment. D. a proprietorship.
Refer to the information provided in Figure 27.4 below to answer the question(s) that follow.
Figure 27.4Refer to Figure 27.4. If the economy is currently at the intersection of AS and AD, stagflation would be caused by
A. an increase in AD. B. a decrease in AD. C. a decrease in AS. D. an increase in AS.
Refer to the diagrams that show identical marginal utility from income curves for Singer and Catalano. The marginal utility from income curves are drawn on the assumption that:
A. Singer buys more inferior goods than does Catalano.
B. Singer and Catalano have identical capacities to enjoy income.
C. Catalano has a greater capacity to enjoy income than does Singer.
D. Singer has a greater capacity to enjoy income than does Catalano.