If Japan could produce more steel in a year than the United States using the same amount of resources, then
a. Japan must have an absolute advantage in producing steel
b. the United States must have a comparative advantage in producing steel
c. Japan must have a comparative advantage in producing steel
d. neither the United States nor Japan will have a comparative advantage in producing steel
e. there would be no gains from specialization
A
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If firms and workers could predict the future price level exactly, the short-run aggregate supply curve would be
A) downward sloping. B) horizontal. C) upward sloping. D) vertical.
On the eve of the American Revolution, most colonials produced agricultural goods. The war boosted profits for many farmers
Indicate whether the statement is true or false
The level of detail in an economic model
a. is as close as possible to the level of detail in reality b. depends on the purpose of the model c. is as complex as possible d. is the same regardless of the purpose of the model e. is as complex as possible to accomplish its purpose
With a sole proprietorship:
A. shares are valued by the marketplace. B. income is taxed twice. C. responsibility is shared. D. all of one's assets are at risk of loss.