Refer to the information provided in Table 33.1 below to answer the question(s) that follow. Table 33.1
Refer to Table 33.1. Guatemala has
A. an absolute advantage and a comparative advantage in orange production.
B. a comparative advantage but not an absolute advantage in orange production.
C. an absolute advantage and a comparative advantage in banana production.
D. a comparative advantage but not an absolute advantage in banana production.
Answer: D
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Neoclassical growth theory proposes that
A) technological progress increases the population growth rate and drives down real wages. B) real GDP per person grows because technological change increases profit opportunities. C) real GDP growth is caused by growth in the population. D) discoveries result from choices that increase profits.
The shifting or returning of government economic functions or services to the private sector of the economy is known as
a. laissez-faire. b. privatization. c. deregulation. d. downsizing.
A monopoly misallocates resources when it
A) restricts output so that the marginal benefit of the last unit sold exceeds the marginal social cost of producing the good. B) makes an above-normal profit. C) sells the same product to different groups of customers at different prices. D) exploits scale economies.
Which of the following statements is true about the behavior of the CPI?
a. It has risen steadily since 1960. b. It has fallen steadily since 1960. c. It fell during the 1960s and has risen ever since. d. It rose sharply in the 1970s and then declined in the 1980s. e. It has risen and fallen with roughly equal frequency since 1960.