Refer to the given data. On the basis of the production possibilities data shown:
Answer the question on the basis of the following production possibilities data for Landia and Scandia:
A. Landia has a comparative advantage in chips while Scandia has a comparative advantage
in fish.
B. Landia has a comparative advantage in fish while Scandia has a comparative advantage in
chips.
C. both Landia and Scandia have a comparative advantage in fish.
D. both Landia and Scandia have a comparative advantage in chips.
A. Landia has a comparative advantage in chips while Scandia has a comparative advantage in fish.
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Which of the following bonds would have the highest default risk?
A) municipal bonds B) investment-grade bonds C) U.S. Treasury bonds D) junk bonds
One defining characteristic of pure monopoly is that the ________.
A. monopoly produces a product with no close substitutes B. monopoly uses advertising C. entry into the industry is relatively easy, but exit is difficult D. monopoly is a price taker
Over the past year price inflation has been 10%, but the price of a used Ford Escort has fallen from $6,000 to $5,000. The real price of a Ford Escort has fallen by:
A) 12%. B) 17% C) 20%. D) 24% E) 32%.
The distinction between microeconomics and macroeconomics is
A) clearly drawn, and there is no overlap between them. B) determined by economists in a clear and concise manner. C) narrowly drawn, and microeconomic analysis often relies on macroeconomic tools. D) often blurred because aggregates are made up of individuals and firms.