Jose and Maria work at a restaurant. Jose can make either 10 pancakes or 4 waffles; Maria can make either 8 pancakes or 2 waffles. According to this scenario
A) Maria has the absolute advantage in making waffles
B) Maria has the absolute advantage in making pancakes.
C) Maria has the comparative advantage in making pancakes.
D) Jose has the comparative advantage in making pancakes.
Answer: C
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The figure above shows the production possibilities frontiers for the United Kingdom and France. If the United Kingdom and France specialize and engage in trade, the United Kingdom will produce ________ and France will produce ________
A) wheat; wheat B) wheat; fish C) fish; wheat D) fish; fish E) both wheat and fish; both wheat and fish
Discuss the values of private saving in closed and open economies
What will be an ideal response?
When production does not proceed on the basis of comparative advantage, resources are expended on their most efficient uses
a. True b. False Indicate whether the statement is true or false
The amount of goods and services the economy could produce if the labor force is fully employed is called
a. nominal GDP. b. real GDP. c. actual GDP. d. potential GDP.