If Colombia has a comparative advantage over Mexico in the production of coffee, then:
A. Colombia probably sells coffee to Mexico.
B. Mexico is more productive at making coffee than Colombia.
C. Colombia has the ability to produce more coffee than Mexico with the same resources.
D. Mexico should trade coffee to Colombia.
A. Colombia probably sells coffee to Mexico.
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Use the following table to answer the question below.Price per UnitQuantity Demanded per YearQuantity Supplied per Year$52,0000101,800300151,600600201,400900251,2001,200301,0001,500In this competitive market, the price and quantity will settle at
A. $25 and 1,200 units. B. $10 and 1,800 units. C. $20 and 900 units. D. $15 and 1,600 units.
General equilibrium occurs in autarky at the point where the community indifference curve intersects the production possibilities frontier
Indicate whether the statement is true or false
When supply and demand for a product decrease simultaneously, we
A) can predict that both equilibrium price and quantity will increase. B) can predict that both equilibrium price and quantity will decrease. C) cannot predict equilibrium price, but know that equilibrium quantity will decrease. D) cannot predict the change in either the equilibrium quantity or equilibrium price.
Which of the following correctly describes a way in which deficit spending can impose a burden on future generations? I
Failure to allocate deficit spending to uses that boost future real Gross Domestic Product (GDP) will require taxing future generations at a higher rate to repay the resulting higher public debt. II. Government deficits that lead to higher employment and real Gross Domestic Product (GDP) in the future will generate increased income taxes for future governments, which will respond by spending the higher tax revenues, creating higher future government budget deficits. III. Other things being equal, deficit spending fuels increased consumption of goods and services by the current generation that crowds out capital investment, thereby leaving future generations with a smaller stock of capital than otherwise would have existed. A) I only B) II only C) I and III only D) II and III only