Refer to the above table. If opportunity costs are constant, each nation produces only the one good for which it has a comparative advantage, and trade can occur between the two countries
A) country X will produce product A and country Y will produce product B.
B) country X will produce product B and country Y will produce product A.
C) country X will refuse to trade with country Y since country X has a comparative advantage in both products.
D) country Y will refuse to trade with country X since country Y has a comparative advantage in both products.
B
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Roughly what percent of American families lived below the poverty line in 2010?
A) 12% B) 22% C) 32% D) 42% E) 52%
Emma owns a firm that produces umbrellas. Currently, Emma produces 2,500 umbrellas a day. Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers. Emma is ________ efficient
A) cost B) technologically C) economically D) capital and labor
Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch.
In the equilibrium of this game:
A. Tracy gets 300 and Amy gets 200. B. Tracy gets 25 and Amy gets 225. C. Tracy gets 75 and Amy gets 150. D. Tracy and Amy both get 125.
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900. You may find it easier to answer the following questions if you fill in the payoff matrix below. 
width="383" />For both Joe and Sam, ________ is a ________. A. leaving the price at $3; dominant strategy B. cutting the price to $2.90; dominated strategy C. leaving the price at $3; Nash equilibrium D. cutting the price to $2.90; dominant strategy