The United States imports televisions from Japan and Japan imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true that
A. the United States has comparative advantage in producing computer chips.
B. the opportunity cost of producing computer chips in the United States is higher than that in Japan.
C. the opportunity cost of producing televisions in Japan is higher than that in the United States.
D. the United States has comparative advantage in producing televisions.
Answer: A
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The income-expenditure multiplier is the effect of a one-unit increase in:
A. after-tax disposable income on consumption. B. expenditure on potential output. C. after-tax disposable income on short-run equilibrium output. D. expenditure on short-run equilibrium output.
Answer the following statement(s) true (T) or false (F)
1. The recycling rate in the United States is higher than that of any other nation in the world. 2. According to the textbook application, the Duales System Deutschland AG (DSD) was formed in response to requirements of Germany’s Packaging Ordinance of 1991. 3. EPA’s integrated waste management system promotes techniques and programs aimed at recycling, source reduction, combustion, and land disposal, in that order. 4. MSW markets achieve efficiency at the point where MPC = MPB as long as there are no externalities. 5. If MSW services are priced in a way that is independent of the quantity of waste generated, that pricing system is called fixed fee or flat fee.
Sage decides to cash in all his savings to open a recording studio. He has three accounts to cash in. The first earned 9 percent for two years. The second earned 6 percent for three years. And the last earned 3 percent for six years. Supposing he started with $5,000 in each account, from which account will he get the most cash?
a. the two-year account at 9 percent b. the three-year account at 6 percent c. the six-year account at 3 percent d. The accounts are all worth the same.
Clarity Bank has a money multiplier of 12. If Ayesha deposits $75,000 into her account at Clarity, her money could potentially create ______ in new money.
a. $6,250 b. $75,000 c. $900,000 d. $583,333