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. What is the relative price of cheese (the price of cheese in terms of wine) in France under a no-trade situation?Labor hours to make:In the United StatesIn France1 gallon of wine4.001.001 pound of cheese1.002.00
A. One gallon of wine per pound
B. 0.5 gallon of wine per pound
C. 0.25 gallon of wine per pound
D. Two gallons of wine per pound
Answer: D
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A) 10 B) 1.38 C) 0.724 D) 0.1
Inefficiency is a flaw of a command economy because there is less incentive for resources to flow to their highest-valued uses
a. True b. False
Which of the following is true of saving and investment?
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The aggregate-demand curve shows the quantity of goods and services that firms choose to produce and sell at each price level.
a. true b. false