Refer to the scenario above. Which of the following is true?
A) Both the workers should specialize in the production of Good Y.
B) Worker 1 should produce Good Y and Worker should produce Good X.
C) Worker 1 should produce Good X and Worker should produce Good Y.
D) Both the workers should specialize in the production of Good X.
C
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Importers collect additional revenues from a ________, and governments collect additional revenues from ________
A) quota; import bans B) quota; tariffs C) tariff; voluntary export restraints D) voluntary export restraint; quotas
The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The table shows that
A) Anaconda has a comparative advantage in the production of corn. B) Bear has an absolute advantage in the production of both goods. C) Anaconda achieves production efficiency only at its production point A. D) Bear achieves production efficiency only at its production point A. E) Both answers A and B are correct.
All of the following are symptoms of definite and indefinite macroeconomic imbalances EXCEPT
A) large budget deficits. B) an overvalued currency. C) a current account deficit. D) the discovery of emerging markets by financial investors who want to diversify their portfolios. E) inflationary pressures.
The idea that tradeoffs have to be made when resources are scarce is reflected in the fact that:
A. the slope of a linear production possibilities is constant. B. the production possibilities curve has a negative slope. C. points below the production possibilities curve are efficient. D. points below the production possibilities curve are inefficient.