Most t-shirts bought by Americans are made in Asia. U.S. consumers of t-shirts buy these t-shirts because
A) they pay a higher price for t-shirts made in Asia than they would for similar shirts made in the United States.
B) they pay a lower price for t-shirts made in Asia than they would for similar shirts made in the United States.
C) they must buy some goods or services produced in Asia.
D) by so doing they are helping preserve U.S. jobs producing t-shirts.
E) they know that the United States has a comparative advantage in wearing t-shirts.
B
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Real GDP measures the ________ of production.
A. physical volume B. current dollar value C. change in the volume D. current market value
Which of the following statements is true?
A) All rational economic agents attempt to maximize their income. B) A rational consumer makes his decisions depending on what the majority chooses. C) A budget constraint is an economic tool that quantifies the trade-off between consumption of two goods. D) A trade-off refers to the exchange of goods between economic agents through a barter system or mutual exchange.
There are two conditions necessary for a consumer to maximize her utility. One is that the marginal utilities per dollar spent on each good and service consumed are equal. What is the other condition?
A) The prices of each good and service consumed must not be too high. B) Total spending on all goods and services must equal the amount available to be spent. C) The consumer must be satisfied with the choices she makes. D) The total spent on each good and service is the same.
Consider the following hypothetical data for a developing country:
Year Total Debt ($ bn) Debt/Export (%) GDP Growth Inv. Growth 1 6 134 0.6% –1.0% 2 6.5 147 2.9% 1.1% 3 7 159 5.1% 1.6% 4 7.5 174 6.4% 2.4% 5 8 198 1.1% –0.6% Does this country have a debt crisis? What additional pieces of quantitative or qualitative evidence (if any) would help you to decide?