Nation Alpha can produce employing all its available resources either 800 units of chemicals or 1,600 units of clothing. Nation Beta can produce either 200 units of chemicals or 800 units of clothing:
A. Nation Alpha has a comparative advantage in producing clothing
B. Nation Beta has a comparative advantage in producing chemicals
C. Nation Alpha has a comparative advantage in producing chemicals
D. Nation Beta is the high-cost producer of clothing
C. Nation Alpha has a comparative advantage in producing chemicals
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Fran runs a doughnut shop in a tiny 3-person town. The table below shows the quantity demand by the three townspeople at various prices.Price PerDoughnutQuantity Demandedby AlQuantity Demandedby BettyQuantity Demandedby Carol10 cents104625 cents92535 cents71550 cents504When the price of a doughnut is 25 cents, what is the market demand for doughnuts?
A. 13 doughnuts B. 16 doughnuts C. 20 doughnuts D. 9 doughnuts
By requiring that applicants for insurance policies fill out lengthy forms and take a physical examination, insurers attempt to guard against
a. symmetrical information b. adverse selection c. natural selection d. moral hazard e. the winner's curse
A country announces capital outflow controls that will take effect in three months. This announcement will likely:
A. result in a significant appreciation of the country's currency. B. stabilize the country's exchange rate. C. result in a significant depreciation in the country's currency. D. attract significant amounts of foreign investors.
Refer to the figure below.
If this market is unregulated, the economic surplus received by producers is:
A. $32. B. $16. C. $48. D. $24.