For purposes of determining comparative advantage, the cost of producing a good in each of two countries is measured in terms of:
a. metric units only.
b. opportunity costs.
c. total costs.
d. the currency of the importing country.
e. the currency of the exporting country.
b
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The law of demand implies that, other things remaining the same
A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. C) as income increases, the quantity of cheeseburgers demanded will increase. D) as the demand for cheeseburgers increases, the price of a cheeseburger will fall.
Lucky buys hats for $20 but Lucky will not sell one of her hats for less than $35. Lucky is ________
A) displaying the endowment effect B) making decisions using her prefrontal cortex C) exhibiting bounded self-interest D) showing unbounded will power
People are classified as unemployed if
A. they choose to exit the labor force because they cannot find a job. B. they are not working for voluntary reasons. C. they are willing and able to work but cannot find a job. D. they do not have a job because they choose to work at home for no pay.
Exchange rate crises are only associated with fixed exchange rate systems
Indicate whether the statement is true or false