If Country A can produce an extra plane by giving up two boats, and Country B can produce an extra plane by giving up three boats, then
A) Country A has an absolute advantage in producing planes and a comparative advantage in producing boats.
B) The two countries have no incentive to trade with one another.
C) Country A would like to trade with B, but B cannot gain by trading with A.
D) Country B has a comparative advantage over Country A in the production of planes.
E) Country A has a comparative advantage over Country B in the production of planes.
E
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Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?
A) an increase in supply and an increase in demand greater than the increase in supply B) an increase in demand and an increase in supply C) a decrease in demand and an increase in supply D) an increase in supply
One-third of the world's population live in China and India. How did the growth rate of these two countries compare with the growth of high income industrial countries during 1980-2009?
What will be an ideal response?
Figure 3-3
In , if the initial demand for margarine were D1, the impact of a decrease in the price of butter, a substitute good for margarine, would be illustrated as
a.
a shift in the demand curve to D2.
b.
a shift in the demand curve to D3.
c.
a movement downward to the right along the original demand curve D1.
d.
none of the above.
Refer to the table below. The consumption of which bar yields the greatest marginal utility?
The table below shows the utility schedule for a consumer of candy bars.
A. Third
B. Fourth
C. Sixth
D. Second