Suppose that in Slovakia one unit of labor can produce either 16 tons of wheat or 32 tons of soy and in Poland one unit of labor can produce either 4 tons of wheat or 2 tons of soy. Given this information, which of the following statements is true?
A. Slovakia has a comparative advantage in producing neither wheat nor soy.
B. Slovakia has a comparative advantage in producing both wheat and soy.
C. Poland has a comparative advantage in producing soy but not wheat.
D. Poland has a comparative advantage in producing wheat but not soy.
Answer: D
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If the full-employment quantity of labor increases, then the
A) LAS curve shifts rightward and the SAS curve does not shift. B) SAS curve shifts rightward and the LAS curve does not shift. C) SAS curve shifts rightward and the LAS curve shifts rightward. D) SAS curve shifts rightward and the LAS curve does shifts leftward.
The price elasticity of demand for a horizontal demand curve is:
a. 0. b. -1. c. 1. d. - infinity.
Answer the following statement(s) true (T) or false (F)
1. Depreciation payments are annual allowances set aside to replace worn-out capital 2. The indirect business tax is a tax on the sale of a stock or bond. 3. The main problem in calculating accurate GDP statistics happens when comparing the GDP over time. 4. The price index is most often used to inflate the current GDP dollar. 5. The real output of goods and services per 100 people is called real gross domestic product per capita.
Given a linear supply function of the form QXS = -10 + 5PX, find the inverse linear supply function.
A. PX = -10 + 0.2QX. B. PX = -10 + 5QX. C. PX = 2 + 0.2QX. D. PX = 2 + 5QX.