Farmer Ken in Kentucky can raise either 80 pounds of tobacco or 40 bushels of cotton on an acre. Farmer Calvin in California can raise either 150 pounds of tobacco or 50 bushels of cotton on an acre. Which farmer can produce tobacco more efficiently?
a. Farmer Ken in Kentucky.
b. Farmer Calvin in California.
c. The two farmers are equally efficient at growing wheat.
d. More information is needed to determine comparative advantage.
b. Farmer Calvin in California.
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Which of the following would contribute to a United States current account surplus?
A. The United States makes a unilateral tariff reduction on imported goods. B. General Motors pays a dividend to a Swiss stockholder. C. The United States cuts back on American military personnel stationed in Germany. D. Russian vodka becomes increasingly popular in the United States.
A firm could be guilty of antitrust violations using the judgment by structure criteria despite:
A. controlling only 10 percent of the market. B. restraining trade through cartels. C. pricing goods above the competitive price. D. producing the best product it could at the lowest possible cost.
During the 2008 presidential campaign, candidate Barack Obama argued in favor of repealing the majority of the Bush tax cuts in order to increase government revenue.
Answer the following statement true (T) or false (F)
Refer to Figure 14.2. A movement from point c to point a could be caused by a(n):
A. decrease in government spending. B. increase in the price of oil. C. decrease in taxes. D. decrease in short-run aggregate supply.