If the United States could produce 4 tons of potatoes or 2 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, the country with the comparative advantage in producing wheat is ____ and the country with the absolute advantage in producing potatoes is ____.
A. the United States; the United States
B. the United States; Ireland
C. Ireland; the United States
D. Ireland; Ireland
C. Ireland; the United States
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When the nominal interest rate falls, the opportunity cost of holding money
A) decreases and there is a movement downward along the demand for money curve. B) increases and there is a movement upward along the demand for money curve. C) decreases and the demand for money curve shifts rightward. D) increases and the demand for money curve shifts rightward. E) decreases and the demand for money curve shifts leftward.
If in the process of calculating GDP, the market value of all intermediate goods is added to the market value of all final goods, this would
A) overstate the actual value of GDP. B) produce the correct value of GDP. C) understate the actual value of GDP. D) avoid the possible error of double counting.
Economic profits at the short-run break-even point are
A. positive. B. equal to zero. C. negative. D. indeterminate since they also depend on the size of the fixed costs.
Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.
Figure 28.4Refer to Figure 28.4. If the demand for labor falls from D to D' and wages are sticky on the downward side, there will be unemployment of ________ million.
A. 200 B. 150 C. 100 D. 50