In an hour April can solder 50 connections or inspect 20 parts while Austin can solder 25 connections or inspect 20 parts in an hour.
A. April has a comparative advantage over Austin in soldering while Austin has a comparative advantage in inspecting.
B. Austin has a comparative advantage over April in soldering while April has a comparative advantage in inspecting.
C. Austin had a comparative advantage over April in both soldering and inspecting.
D. April has a comparative advantage over Austin in both soldering and inspecting.
Answer: A
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Among the key ingredients that propelled the American economy to emerge as the leading industrial power by the beginning of World War I were
A. the world's first universal public education system. B. a large agricultural surplus. C. entrepreneurial abilities of great industrialists. D. all of the choices are true.
If investment spending increases by $1 million, then the aggregate demand curve shifts
A) rightward by less than $1 million. B) leftward by more than $1 million. C) rightward by more than $1 million. D) rightward by $1 million. E) leftward by less than $1 million.
According to the Laffer curve, increases in the tax rate will lead to a(n)
A) steady decrease in tax revenues. B) steady increase in tax revenues. C) initial decrease in tax revenues and then an increase in tax revenues. D) initial increase in tax revenues and then a decrease in tax revenues.
One reason firms in monopolistic competition can charge different prices is that their products are
a. identical. b. similar. c. differentiated. d. guaranteed.