A nation has a comparative advantage over a trading partner in the production of good A if it
A. produces good A at a lower opportunity cost per unit than its trading partner.
B. can produce good A with the same resources as its trading partner but in less time.
C. can match its trading partner's output of good A and have resources left over.
D. has an absolute advantage over its trading partner.
A. produces good A at a lower opportunity cost per unit than its trading partner.
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Explain how the wealth effect can affect aggregate demand
What will be an ideal response?
Block pricing
A) is a form of nonlinear price discrimination. B) is pricing where one price is charged for the first block of units purchased, and different prices for subsequent blocks. C) can be either use increasing or decreasing prices for blocks purchased. D) All of the above.
Which of the following is an explanation for why some poor countries suffer from lower productivity growth?
a. Too much saving has lead to the accumulation of capital in poor countries. b. The adoption of technology too quickly hurts the labor force in poor countries. c. Primary education is universal in poor countries. d. Poor countries have lower capital stocks.
Which of the following will not cause the aggregate supply curve to fall?
a. A reduction in a nation's level of productivity. b. A decrease in the nation's average price level (i.e., the implicit price index). c. An increase in input prices. d. A decrease in the value of the domestic currency. e. Natural disasters.