If Japan gives up ten bushels of rice to produce one bicycle, while the United States gives up five bushels of rice to produce one bicycle, then
a. the opportunity cost of producing bicycles in the United States is higher than in Japan
b. Japan has a comparative advantage in the production of bicycles
c. the United States has an absolute advantage in the production of rice
d. total output will be greater if the United States specializes in rice and Japan specializes in bicycles
e. total output will be greater if Japan specializes in rice and the United States specializes in bicycles
E
You might also like to view...
Which of the following is recorded in the U.S. balance of payments account?
I. foreign investment in the United States II. U.S. investment abroad III. the U.S. government deficit or surplus A) III only B) I and II C) I and III D) I, II and III
If at the current level of product-specific service, consumers' value at $50 and the cost of retailers to provide the services is $55, which of the following is true?
A) the profit-maximizing level of profit-maximizing services is less than the current level B) the profit-maximizing level of profit-maximizing services is greater than the current level C) the profit-maximizing level of profit-maximizing services is exactly double the current level D) the profit-maximizing amount of product-specific services is being offered.
Which one of the following is an example of a positive statement?
A) Farmers need some type of government aid. B) State governments should provide economic assistance to farmers. C) The federal government should provide economic assistance to farmers. D) The amount of financial assistance given to farmers is higher this year than it was 10 years ago.
An increase in the demand for workers producing computers for export versus producing agricultural products that can be imported more cheaply from abroad is an example of how increasing wage inequality can result from:
A. increasing reservation prices. B. the diminishing marginal product of labor. C. globalization. D. the diminishing marginal product of capital.