Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement?
A) The United States has a comparative advantage in computers.
B) The United States has a comparative advantage in bicycles.
C) Mexico has a comparative advantage in computers.
D) Mexico has a comparative advantage in both goods.
A
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A logarithmic variable cost function implies that
A) marginal cost is increasing at a decreasing rate. B) marginal cost is increasing at an increasing rate. C) marginal cost is constant. D) marginal cost is decreasing as quantity increases.
If Big Scoops, a local ice cream parlor, purchases milk from a grocery store to make their ice cream, this is an example of ________.
A) outsourcing B) forward integration C) using a spot market D) backward integration
Which of the following regions obtained most of its imported goods from the United Kingdom?
a. the New England colonies b. the Middle colonies c. the upper Southern colonies d. the lower Southern colonies e. All of the above.
Which measure of inflation best reflects underlying trends in the economy?
A. Core inflation B. Headline inflation C. Overall inflation D. Nominal inflation