Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost of a pair of shoes is __________ for the United States than Canada, so Canada has the ______________ advantage in shoe production.
A. higher; comparative
B. lower; comparative
C. higher; absolute
D. lower; absolute
A. higher; comparative
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Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W24X18 How many books will Campus Books sell if it must charge a single price to all of its customers?
A. 5 B. 7 C. 3 D. 4
Which of the following is true about the unions' supply curve of labor?
a. It shifts to the right because unions force firms to increase their employment. b. It is horizontal at the wage rate established by the union. c. Is the same as the marginal labor cost curve of the monopsonist. d. It is steeper than a nonunion supply curve of labor. e. It is downward sloping.
Ceteris paribus, if the Fed raises the discount rate, then:
A. The money multiplier decreases. B. The lending capacity of the banking system increases. C. Excess reserves decrease. D. The incentive to borrow reserves decreases.
ETFs
What will be an ideal response?