Suppose China can produce either 300 telephones or 200 DVD players, and Japan can produce either 200 telephones or 100 DVD players. Implicitly, Japan has
A. Both an absolute and a comparative advantage in telephones.
B. Neither a comparative nor an absolute advantage in telephones.
C. A comparative but not necessarily an absolute advantage in telephones.
D. An absolute but not necessarily a comparative advantage in telephones.
Answer: C
You might also like to view...
In practice, the hedonic price method
a. is easy to use because attribute data are always readily available b. estimates the prices of the product’s characteristics c. can be implemented with a simple empirical model d. has never been used by empirical economists
How will an increase in labor productivity affect equilibrium in the labor market?
A) The demand for labor will increase and the equilibrium wage and quantity of labor will increase. B) The demand for labor will decrease because fewer workers will be needed to produce the same output. The equilibrium wage and quantity of labor will decrease. C) The supply of labor will increase and the equilibrium wage and quantity of labor will increase. D) The demand for jobs will increase and the equilibrium wage and quantity of labor will increase.
The circular flow model illustrates the crucially important idea of macroeconomics, which is that:
A. every expenditure of someone in the economy is exactly equal to the income of another. B. only two markets exist in every economy—input and output. C. income is lower when there is more spending on goods and services. D. the flow of two things in the economy—"stuff" and "money"—travel in the same direction.
Which of the following is not a characteristic of pure competition?
A. Price strategies by firms. B. A standardized product. C. No barriers to entry. D. A larger number of sellers.