Suppose China can produce 200 TVs or 200 DVD players. South Korea can produce either 100 TVs or 200 DVD players. In terms of TV production, we can conclude that
A. China has an absolute advantage in TV production.
B. China has a comparative advantage in TV production.
C. South Korea has a comparative advantage in TV production.
D. South Korea has an absolute advantage in TV production.
Answer: B
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When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the
A) benefits of the candy bars to the desires he had for the candy bars. B) marginal benefits of the candy bars to the marginal costs of the candy bars. C) opportunity costs of the candy bars to the scarcity of the candy bars. D) benefits of the candy bars to the scarcity candy bars. E) self-interest to the social interest.
Using the aggregate expenditure-output model, assume the aggregate expenditures (AE) line is below the 45-degree line at full-employment GDP. This vertical distance is called a(n):
A. inflationary gap. B. recessionary gap. C. negative GDP gap. D. marginal propensity to consume gap.
Which of the following is a financial intermediary?
A. the Internal Revenue Service B. the U.S. Department of the Treasury C. an insurance company D. a share of corporate stock
Which statement is false?
A. Between 1789 and 1812 the United States' population doubled. B. Between 1812 and 1835 the United States' population doubled. C. Between 1835 and 1858 the United States' population doubled. D. None of the statements are false.