The following table shows the units of output a worker can produce per month in country A and country B.
Country
Food
Electronics
Country A
20
5
Country B
12
4
Which of the following statements about absolute advantage is true?
A. Country A has the absolute advantage in the production of food while country B has the absolute advantage in the production of electronics.
B. Country A has the absolute advantage in the production of both food and electronics.
C. Country B has the absolute advantage in the production of both food and electronics.
D. All of these.
Answer: B
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A) "for whom" B) "when" C) "where" D) "how"
General Motors estimates that U.S. demand for its newest product will be: Qus = 30,000 - 0.5P. Export demand will be Qex = 25,000 - 0.5P. The total market demand curve for this product will be a
A) straight line with a slope of -0.5. B) straight line with a slope of -1.0. C) kinked line with the kink at Q = 25,000. D) kinked line with the kink at P = 50,000. E) none of the above
Proponents of inward-oriented policies ignore the fact that natural resources are exhaustible, so their long-run market value will fall
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.