Country Y has fifteen thousand acres of land and forty-five thousand laborers, whereas the Rest of the World has one hundred thousand acres of land and two hundred thousand laborers. These countries produce a labor-intensive Good A, and a land-intensive Good B. Based on the information given here, we can conclude that
A. Country Y is relatively labor-abundant.
B. the factor proportions are the same in both Country Y and the Rest of the World.
C. Country Y enjoys absolute advantage in the production of Good B.
D. the Rest of the World is relatively labor-abundant.
Answer: A
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A) low-inflation B) poor C) rich D) high-inflation
Which of the following statements best describes the study of economics?
A. Economics studies how people maximize returns in the stock market. B. Economics studies how the Federal Reserve handles fluctuation in business cycles. C. Economics studies how governments determine appropriate tax rates. D. Economics studies how individuals and groups manage scarce resources.
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Refer to the graph shown. If the firm increases output from 50 to 60, total revenue will increase:
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