If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 4 units of software and 4 units of hardware, then
A. the United States has a comparative advantage in both goods.
B. China has a comparative and absolute advantage in both goods.
C. the United States has a comparative and absolute advantage in both goods.
D. the United States has an absolute advantage in both goods.
Answer: D
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An increase in aggregate demand will cause:
a. real domestic output to fall and have no effect on the price level b. The price level to increase and real domestic output to rise c. The price level to drop and have no effect on real domestic output d. Both real output and the price level to fall
The Federal Reserve makes decisions regarding:
A. monetary and fiscal policy. B. fiscal policy only. C. structural policy only. D. monetary policy only.
Refer to the information provided in Table 13.1 below to answer the question(s) that follow. Table 13.1Price ($)Quantity4.002,0003.502,4003.002,8002.503,2002.003,6001.504,0001.004,400Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the most the monopoly would expend in rent-seeking activity?
A. $4,800 B. $5,600 C. $6,000 D. $8,400
Refer to the table above. If gross investment is $12 billion, the equilibrium level of GDP will be:
Refer to the table above. If gross investment is $12 billion, the equilibrium level of GDP will be:
A. $260 billion
B. $270 billion
C. $280 billion
D. $290 billion