Refer to Table 5.1. Does either Andrea or Hector have an absolute advantage and if so, in what product?
A) Andrea only has an absolute advantage in producing bracelets.
B) Hector only has an absolute advantage in producing bracelets.
C) Andrea has an absolute advantage in producing both products.
D) Hector only has an absolute advantage in producing tiaras.
C
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Joe and Rita each have some milk and cookies (Milk on the horizontal axis). Joe's MRS of cookies for milk is 2. Rita's MRS of cookies for milk is 4. Which of the following statements is TRUE?
A) No gains from trade are possible. B) Both Rita and Joe can be made better off if Rita gives Joe some cookies in exchange for milk. C) Rita and Joe are on the contract curve. D) Both Rita and Joe can be made better off if Joe gives Rita some cookies in exchange for milk.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the comparative advantage in the production of:
A. iPods only. B. tablets only. C. both iPods and tablets. D. neither iPods nor tablets.
All four market forms discussed in the text maximize profit where
a. P = MC. b. AR = AC. c. MR = MC. d. MC = AR.
The United States has the least income inequality of all the nations in the world.
Answer the following statement true (T) or false (F)