Italy has a comparative advantage in the production of
A. beer.
B. pizza.
C. both beer and pizza.
D. neither beer nor pizza.
A. beer.
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Juan Pablo and Zak are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $8,000 . If they both advertise on radio, each will earn a profit of $14,000 . If neither advertises at all, each will earn a profit of $20,000 . If one advertises on TV and other advertises on radio,
then the one advertising on TV will earn $12,000 and the other will earn $10,000 . If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $22,000 and the other will earn $4,000 . If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $24,000 and the other will earn $8,000 . If both follow their dominant strategy, then Juan Pablo will a. advertise on TV and earn $8,000. b. advertise on radio and earn $14,000. c. advertise on TV and earn $22,000. d. not advertise and earn $20,000.
Which of the following statements represents a correct and sequentially accurate economic explanation?
A) If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward. B) If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward. C) If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward. D) If consumption falls, total expenditures on goods and services falls, and the AD curve shifts leftward. E) c and d
Mugabe's new money:
A. didn't increase inflation rates in Zimbabwe. B. caused Zimbabwe's deflation to get even worse. C. helped pull Zimbabwe out of its recession. D. didn't increase productivity in Zimbabwe.
The shape of a firm's long-run ________ depends on how costs vary with scale of operations.
A. average cost curve B. variable cost curve C. marginal revenue curve D. fixed cost curve