For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true concerning comparative advantage between the two countries?
a. Denmark has the comparative advantage in watches and cheese.
b. Germany has the comparative advantage in watches and cheese.
c. Germany has the comparative advantage in watches.
d. Denmark has the comparative advantage in watches.
e. Denmark has the comparative advantage in cheese.
D
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A set of actions that a firm takes to achieve a goal, such as maximizing profits, is called
A) the Porter's Competitive Forces plan. B) game theory. C) a payoff matrix. D) a business strategy.
Refer to Figure 23-3. Suppose that investment spending increases by $10 million, shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2. If the MPC is 0.9, then what is the change in GDP?
A) $9 million B) $10 million C) $90 million D) $100 million
If information is asymmetric, explain why the hire contract is not efficient in production and a moral hazard exists, but the fixed fee to the principal contract is efficient and does not pose a moral hazard problem
What will be an ideal response?
Typical goals of a labor union in the United States include
A. More vacation time, higher profit, and more flexible workplace rules. B. Less work, more workers, and more overtime. C. Higher profit, lower output, and greater productivity. D. Higher wages, better working conditions, and more job security.