If the opportunity cost of producing wheat in Canada is four buffalo and the opportunity cost of producing wheat in the U.S. is two buffalo then we know that
a. Canada has both a comparative advantage and absolute advantage producing wheat
b. Canada has a comparative advantage producing wheat
c. the U.S. has an absolute advantage producing wheat
d. the U.S. has both a comparative advantage and absolute advantage producing wheat
e. the U.S. has a comparative advantage producing wheat
E
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A) fall; rise B) rise; rise C) rise; fall D) fall; fall
An assumption of neoclassical growth theory is that
A) technological change is random. B) technological change can be influenced by savings. C) more growth encourages more technological change. D) None of the above answers is correct.
An indifference curve is:
a. downward sloping and concave to the origin. b. downward sloping and convex to the origin. c. upward sloping and concave to the origin. d. upward sloping and convex to the origin.
Which of the following countries is NOT involved in a free trade agreement with the U.S.?
A) China B) Australia C) Jordan D) Guatemala