Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. The United States has a comparative advantage in the production of machinery.
B. The United States does not have an absolute advantage in the production of either good.
C. The United States has an absolute advantage in the production of both goods.
D. Mexico has an absolute advantage in the production of machinery.
Answer: C
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In a closed economy, public saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y - C - T B) Y - G - T C) T - G - TR D) Y - C - T + TR
U.S. businesses are demanders of foreign currencies because they need them to ________.
A. receive interest payments from foreign governments B. pay for goods and services imported from foreign countries C. sell goods and services exported to foreign countries D. receive interest payments from foreign businesses
Refer to the diagram for a specific economy. An increase in aggregate demand will:
A. shift this curve to the right.
B. shift this curve to the left.
C. move this economy down and to the right along the curve.
D. move this economy up and to the left along the curve.
The table below shows the weekly supply for hamburgers in a market where there are just three sellers.PriceSeller 1 Qs 1Seller 2 Qs 2Seller 3 Qs 3$5854464334322221If there were 200 sellers in the market, each with a supply schedule identical to seller 3 in the table above, then the weekly quantity of hamburgers supplied in the market at a price of $4 would be
A. 600. B. 400. C. 800. D. 200.