Refer to Table 2-9. If the two countries specialize and trade, who should export sailboats?
A) There is no basis for trade between the two countries.
B) Guatemala
C) Honduras
D) They should both be importing sailboats
Answer: C) Honduras
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Ultimately, the change in unemployment associated with a change in inflation is due to
a. the shape of the long-run aggregate supply curve. b. unanticipated inflation, not inflation per se. c. anticipated inflation, not inflation per se. d. a change in the natural rate of unemployment.
If a one percent increase in the price of oranges leads to a five percent increase in the quantity supplied, the price elasticity of supply for oranges is ________.
A. 1/2 B. 5 C. 1/5 D. 2
The kinked-demand curve model of oligopoly:
A. assumes a firm's rivals will ignore a price cut but match a price increase. B. embodies the possibility that changes in unit costs will have no effect on equilibrium price and output. C. assumes a firm's rivals will match any price change it may initiate. D. assumes a firm's rivals will ignore any price change it may initiate.
What is a marginal benefit?
What will be an ideal response?