Refer to Figure 2-8. Which country has a comparative advantage in the production of coconuts?
A) Guatemala B) Costa Rica
C) They have equal productive abilities. D) neither country
A
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Use the following circular flow diagram to answer the question below.
If box A represents businesses or firms, B the resource market, and C households, and if flow (7) represents goods and services, then flow (6) would represent
A. consumption expenditures. B. goods and services. C. money income. D. resources.
Which of the following is an example of an intermediate-term debt?
A) a fifteen-year mortgage B) a sixty-month car loan C) a six-month loan from a finance company D) a thirty-year U.S. Treasury bond
Which of the following is most likely to cause the long-run aggregate supply curve to shift rightward?
a. A rise in energy prices b. A drop in the actual price level c. An increase in the demand for leisure hours d. An increase in the level of investment spending that is less than the depreciation of the capital stock e. A technological breakthrough with widespread practical applications
If firms are competitive, then labor-market discrimination
a. cannot exist in either the short run or the long run. b. will be more of a problem than if the market were monopolistic or imperfectly competitive. c. likely will not be a long-run problem unless customers exhibit discriminatory preferences or government maintains discriminatory policies. d. likely will be more of a problem in the long run than in the short run due to the zero-profit condition that characterizes long-run equilibrium for competitive firms.