Suppose that the U.S. can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude
a. the U.S. has a comparative advantage in the production of cars.
b. France has a comparative advantage in the production of wine.
c. the U.S. has a absolute advantage in the production of wine.
d. all of the above are conclusions are correct.
d
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An incentive compensation scheme includes
a. a performance evaluation system b. a disciplinary action committee c. a reward system linked to performance d. Both A&C
Large oligopoly firms are often able to take advantage of significant economies of scale. As a result, they can often produce at a lower average total cost than can smaller firms
a. True b. False Indicate whether the statement is true or false
How much is this firm's profit?
Refer to Figure 26-4. If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent, then the equilibrium real interest rate is
a. 6 percent
b. higher than 8 percent
c. lower than 6 percent.
d. between 6 percent and 8 percent