Suppose the opportunity cost of producing 1 microwave oven in the U.S. is 100 bushels of wheat; in Korea the opportunity cost of producing 1 microwave oven is 150 bushels of wheat. In these circumstances U.S. consumers will be better off if
A. the U.S. possesses a comparative advantage in the production of both of these goods.
B. the U.S. imports microwaves and exports wheat in its trade with Korea.
C. the U.S. produces both of these goods. If either wheat or microwave ovens are imported from Korea, U.S. workers will lose their jobs. This would result in lower income and consumption in the U.S.
D. the U.S. exports microwave and imports wheat in its trade with Korea.
D. the U.S. exports microwave and imports wheat in its trade with Korea.
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Money that a firm uses to buy the physical plant, equipment, and raw materials for production is called
a. profit b. loanable funds c. marginal revenue product of capital d. capital equipment e. total physical product of capital
Typically, nominal interest rates and anticipated inflation rates
A. move in opposite directions. B. are such that the nominal rate is one-half the anticipated rate. C. move in the same direction. D. are not related.
Of the owners of the following firms, which does NOT have unlimited liability for the business' debts?
A. the partnership of Reese and Jones, Attorneys-at-Law B. the Microsoft Corporation C. Wren's Feed and Seed Store, a proprietorship D. Roy Ray's Grocery Store, Roy Ray, proprietor
Evidence suggests that many businesses may waste millions of dollars a year on quality-improvement strategies that don't improve their performance and may even hamper it. Based on this, evaluate the practice of management innovation in architecture critically.
What will be an ideal response?