If a vintner has a comparative advantage in producing wine,
A. wine is the only product he can produce.
B. he can produce wine at a lower opportunity cost than other vintners.
C. he also has an absolute advantage in producing wine.
D. he can produce more wine using the same resources than other vintners.
Answer: B
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One In the News article titled "Funeral Giant Moves In on Small Rivals" reports that profit for a Houston-based funeral giant is 31 cents on every dollar versus a profit of 12 cents for the funeral industry in general. Such profits are most likely the result of
A. A downward shift in the production function. B. Economies of scale. C. Higher minimum average costs. D. Constant returns to scale.
The slope of a line is the
A. values on the y-axis divided by the values on the x-axis. B. values on the x-axis divided by the values on the y-axis. C. change in the values along the x-axis divided by the change in the values along the y-axis. D. change in the values along the y-axis divided by the change in the values along the x-axis.
Which of the following would most likely NOT be taught in a macroeconomics course?
A. government actions in response to a slowdown in the economy B. factors leading to different economic growth rates among countries C. the relationship between the inflation rate and the unemployment rate D. price changes in the world's oil markets
________ reaches its peak about 9-12 months after a spending increase began.
A. The inflation rate B. GDP C. Income D. The multiplier