The graphs above show the production possibilities curves for the U.S. and Canada, which both produce cars and wheat. Based on the graphs above, which of the following is true?
A) The U.S. has an absolute advantage in both goods.
B) Canada has an absolute advantage in cars.
C) The U.S. has a comparative advantage in cars.
D) The U.S. has a comparative advantage in wheat.
C
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Consider the labor market depicted in the above figure. The competitive equilibrium would be for ________ hours of employment
A) 200 B) 400 C) 600 D) None of the above answers is correct.
Special interests are most likely to be effective at _____
a. the federal level b. the state level c. and the county level d. at the city level
Automatic stabilizers
a. increase the problems that lags cause in using fiscal policy as a stabilization tool. b. are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act when the economy goes into recession. c. are changes in taxes or government spending that policy makers quickly agree to when the economy goes into recession. d. All of the above are correct.
Ricardo eats 20 pieces of sushi on a Friday night. When he eats the 21st piece, he starts to feel nauseous and realizes he probably should not have eaten the last piece. This suggests that for Ricardo the
A. marginal utility of the 21st piece of sushi is negative. B. marginal utility of the 21st piece of sushi is positive and increasing. C. total utility of pieces of sushi is increasing by larger and larger increments. D. total utility of pieces of sushi is increasing.