If Brazil has a comparative advantage in the production of coffee compared to the United States, then
A. Brazil can produce coffee at a lower opportunity cost than the United States.
B. the United States has an absolute advantage in the production of coffee.
C. Brazil also has an absolute advantage in the production of coffee.
D. the United States cannot produce coffee.
Answer: A
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a. True b. False Indicate whether the statement is true or false
If 10,000 people are willing to spend a maximum of $20 each to preserve one acre of rainforest, how many acres of rainforest could be preserved, assuming it costs $40 per acre to preserve the rainforest?
a. Zero acres b. 1,000 acres c. 5,000 acres d. 10,000 acres e. There is not enough information to answer the question Feedback
Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. For this consumer, the
opportunity cost of buying two bananas is A. 1 apple. B. 1.5 apples. C. 0.5 apple. D. 0.75 apple.
During the course of an economic contraction, it is likely that a country would experience
A) a currency depreciation as explained by the absorption approach. B) a currency appreciation as explained by the absorption approach. C) a currency depreciation as explained by the elasticities approach. D) a currency appreciation as explained by the elasticities approach.