If the wagerental ratio in Japanese auto production is lower than the wagerental ratio in U.S. auto production, then:
a. Japan must have a comparative advantage in the production of autos.
b. Japan must have an absolute advantage in the production of autos.
c. auto production costs must be lower in Japan than in the United States.
d. auto production costs could be lower in the United States if U.S. labor productivity is higher than Japanese labor productivity.
Ans: d. auto production costs could be lower in the United States if U.S. labor productivity is higher than Japanese labor productivity.
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Economists recognize that because people have limited resources:
A. government intervention is necessary. B. our future is bleak. C. they have to make trade-offs. D. they will never be happy.
Growers expect that the price of a bushel of wheat will increase in one month. This belief results in
A) an increase in current supply of wheat. B) a decrease in current supply of wheat. C) a decrease in future supply of wheat. D) no change in current or future supply of wheat.
According to the graph shown, if this economy were open to free trade, domestic producers would produce how many units?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 115
B. 60
C. 150
D. 90
Yet 57 days before a flight, the lowest average was 19% lower, at $____
Fill in the blank(s) with the appropriate word(s).