Pakistan has developed a comparative advantage in the production of clothing. The source of its comparative advantage in this product is
A) a favorable climate.
B) technology.
C) abundant supplies of natural resources.
D) a large supply of unskilled workers.
Answer: D
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In 1979, the price of gasoline was $1.389 per gallon and the CPI was 72.6. In 2003, the price of gasoline was $1.589 per gallon and the CPI was 182.9. Find the real price of gasoline in 1979 and 2003 in terms of base period dollars
What will be an ideal response?
An industry in which total costs are kept to a minimum because only one firm serves the whole market is called a:
a. natural monopoly. b. competitive monopoly. c. patent monopoly. d. limit monopoly.
Suppose that Angelo and Sonia each win $500 in a charity raffle. Angelo spends his winnings on a new ipad. Sonia saves her winnings. Which of the following is correct?
a. Both Angelo's and Sonia's behavior suggest that they base their purchasing decisions on transitory income. b. Angelo's behavior suggests that he bases his purchasing decisions on transitory income rather than permanent income. Sonia's behavior suggest that she bases her purchasing decisions on permanent income rather than transitory income. c. Angelo's behavior suggests that he bases his purchasing decisions on permanent income rather than transitory income. Sonia's behavior suggests that she bases her purchasing decisions on transitory income rather than permanent income. d. Both Angelo's and Sonia's behavior suggest that they base their purchasing decisions on permanent income.
The planned investment function shows that
A. real gross investment falls as real Gross Domestic Product (GDP) increases. B. at higher levels of planned saving, planned investment increases. C. a positive relationship exists between planned consumption and planned investment. D. a negative relationship exists between the level of planned investment and the interest rate.