When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:
a. a comparative advantage in production of the product.
b. an absolute advantage in production of the product.
c. a higher opportunity cost of producing the product.
d. no incentive to import the product, regardless of the cost-price conditions for other products.
b
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Which of the following is NOT a source of bias in the CPI? i. quality change bias ii. new goods bias iii. quantity change bias
A) i only B) ii only C) iii only D) i and ii E) ii and iii
Sticky wages occur because:
A. employers must wait until the current contract ends to cut someone's pay. B. unions often negotiate wages for several years in advance. C. wages can only be changed at the end of contracts, as opposed to final good prices which can change anytime. D. All of these are true.
Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit-It's productivity?
a. 320 baseball bats b. 160 baseball bats per hour c. 20 baseball bats per hour d. None of the above is correct.
The supply curve represents the relationship between:
A. income and quantity supplied with everything else held constant. B. price and quantity supplied with everything else held constant. C. consumer preferences and quantity supplied with everything else held constant. D. income and price supplied with everything else held constant.