If the United States could produce 4 tons of potatoes or 2 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, the country with the comparative advantage in producing wheat is ____ and the country with the absolute advantage in producing potatoes is ____
a. the United States; the United States
b. the United States; Ireland
c. Ireland; the United States
d. Ireland; Ireland
c
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Which entry strategy involves the least commitment with foreign firms?
A) establishing a partnership with a foreign agent or distributor B) a merger with foreign firm C) a joint venture with foreign firm D) master franchising
If the United Mine Workers successfully negotiates a wage that is higher than the competitive wage,
a. an excess demand for labor is created b. a surplus of labor is created c. the demand for labor increases d. the supply of labor decreases e. the quantity of labor demanded increases
John only works in the summer between semesters. What type of unemployment is he experiencing?
a. Frictional b. Seasonal c. Structural d. Cyclical
Answer the following statements true (T) or false (F)
1. During a recession when banks tend to increase their excess reserves, the money supply M1 decreases. 2. While the withdrawal of cash from banks does not affect money supply immediately, it will affect the banking system's lending capacity which will eventually lead to a contraction in money supply.