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 A has the absolute advantage in the production of:
A. tablets only.
B. iPods only.
C. neither iPods nor tablets.
D. both iPods and tablets.
Answer: B
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If the quantity of money supplied ________ the quantity demanded, in the long run the value of money ________
A) is less than; does not change unless the Fed increases the money supply B) exceeds; falls as people spend their surplus money C) is less than; falls as people spend their surplus money D) exceeds; rises as people buy bonds E) equals; equals zero
Projection bias:
A. is the tendency to evaluate present consequences based upon tastes and needs of the future. B. is the tendency to evaluate future consequences based on tastes and needs at the moment of the decision making. C. is the tendency to project future states of mind to the present. D. can lead people to overestimate their adaptability.
It takes 12 units of resources to produce 100 pounds of silk. It takes 13 units to produce 115 pounds of silk and 15 units to produce120 pounds of silk. This is an example of ______ returns to specialization.
Fill in the blank(s) with the appropriate word(s).
A rationale used for tariff protection by some is that
A. the country wants to practice international price discrimination. B. imports are produced by firms that are more efficient than domestic producers are. C. imports are produced by firms that received subsidies from their governments. D. the country finds its cost of producing their products higher than in other countries.