Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. After looking at the production possibilities for both Tom and Jerry, we can surmise that:
A. Jerry has the absolute advantage in the production of both dishes and fences.
B. Tom has the absolute advantage in the production of fences and Jerry has the absolute advantage in dish production.
C. Tom has the absolute advantage in the production of dishes and Jerry has the absolute advantage in fence production.
D. Tom has the absolute advantage in the production of both dishes and fences.
Answer: C
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In the figure above, income is most unequally distributed
A) in Country A. B) in Country B. C) in Country C. D) in one of the nations, but without more information, it is not possible to determine in which country income is distributed most unequally.
The BRICs share all of the following EXCEPT
A) they are getting a rising share of international trade and foreign investment. B) they are easy places to do business. C) their governments have a lot of power and authority in economic affairs. D) to varying degrees they all present a new model, sometimes referred to as state capitalism.
Public goods are
A. provided only by the capitalistic system. B. any goods or services produced by the government. C. provided to additional users at no additional cost. D. provided only by the communist system.
The Clayton Act outlawed tying contracts, price discrimination, and all mergers.
Answer the following statement true (T) or false (F)