Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil. We can conclude that
A) Honduras has a lower opportunity cost of producing bananas relative to Brazil.
B) Brazil has an absolute disadvantage in producing bananas relative to Honduras.
C) Labor costs are higher for banana producers in Brazil than in Honduras.
D) Honduras also has an absolute advantage in producing bananas relative to Brazil.
A
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Economic analysis indicates that the increasing government expenditures and growth of third-party payments accompanying the Medicare and Medicaid programs
a. reduced the demand for healthcare services. b. reduced the incentive of consumers to economize on their use of healthcare. c. increased the incentive of consumers to economize on their use of healthcare. d. placed downward pressure on the prices of healthcare services.
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the average total cost of production when the firm hires 7
workers? a. $10.06 b. $9.64 c. 81 cents d. 70 cents
Under China's current regime of fixed exchange rates and capital mobility, the main concern is domestic
A. unemployment B. inflation C. depreciation D. liquidation