A country is likely to have a comparative advantage in a land-intensive activity if it has a:
A. large amount of capital equipment relative to its population.
B. large population relative to its landmass.
C. lot of land relative to its population.
D. higher opportunity cost of producing technology.
Answer: C
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If net exports is negative, it must be the case that ________.
A. more goods are being exported than imported B. the value of goods, services, and resources exported is less than the value imported C. more goods are being imported than exported D. the value of goods, services, and resources imported is less than the value exported
Which of the following statements is true of creative destruction?
A) Creative destruction is encouraged in economies with extractive institutions. B) Creative destruction is a phenomenon that was mostly prevalent before the year 1800. C) Creative destruction is generally bad for an economy. D) Creative destruction creates losses for some economic agents and benefits for others.
The price of a good will fall when:
a. there is a shortage of the good. b. there is a surplus of the good. c. demand for the good increases. d. the supply of the good decreases.
What is the order in which an economy tries to solve the issue of resource allocation?
a. Production planning, distribution, and output selection. b. Output selection, production planning, and distribution. c. Production planning, output selection, and distribution. d. Distribution, production planning, and output selection.