Then in terms of production,
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof.
a) Mexico has an absolute advantage in producing goods
b) Canada should produce both goods and services, but mostly goods
c) neither country should produce services
d) the opportunity cost of producing goods is higher in Canada than in Mexico
e) Mexico is relatively more efficient at producing services than goods
d) the opportunity cost of producing goods is higher in Canada than in Mexico
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The more money an average household spends on one specific type of good or service per month, the
A) smaller the relative importance of that item in the CPI market basket. B) larger the relative importance of that item in the CPI market basket. C) costlier it will be to conduct the Consumer Expenditure Survey. D) less significant an increase in the price of that good or service will be for the household. E) more frequently its price is checked when calculating the CPI.
The most important determinant of the price elasticity of demand for a good is
A) the share of the good in the consumer's budget. B) whether the good is a necessity or a luxury. C) the definition of the market for a good. D) the availability of substitutes for the good.
The science of economics is a finished jewel, perfect and unchanging
a. True b. False Indicate whether the statement is true or false
An increase in the supply of labor has the effect of decreasing the
a. wage. b. marginal product of labor. c. value of the marginal product of labor. d. All of the above are correct.