Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. If Macroland's economy is at Point A, it could produce more capital goods
A. only with additional resources.
B. without sacrificing any consumer goods.
C. only by sacrificing some consumer goods.
D. only with technological improvements.
Answer: B
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The table below shows the hourly output per worker in two industries in Chile and Argentina. Use this table to answer the following questions.
a. ___________has an absolute advantage in the production of?hats, and _______________has an absolute advantage in the production of beer. b. ____________ has a comparative advantage in the production of? hats, and____________ has a comparative advantage in the production of beer. c. Suppose that Chile and Argentina currently do not trade with each other. Each has? 1,000 hours of labor to use for producing hats and? beer, and the countries are currently producing the amounts of each good shown in the table below. Using this? information, give a numerical example of how Chile and Argentina can both gain from complete specialization and trade. Assume that after trading? begins, one hat can be exchanged for one barrel of beer. Hats beer chile 9000 600 Argentina 600 800 Complete the table below. The table represents the amount of hats and beer after trading for each country hats beer chile ________ 600 Argentina 600 _______
If the price of the good measured on the horizontal axis falls, a consumer's budget line
A) becomes flatter. B) becomes steeper. C) shifts rightward and its slope does not change. D) shifts leftward and its slope does not change.
Which of the following goods would be most likely to feature an income elasticity of zero?
a. tickets to a championship football game b. insulin c. orange juice d. cigarettes
Keynesians challenge the classical or monetarist view that payment schedules and patterns of spending and saving associated with the transactions demand for money are basically stable
Indicate whether the statement is true or false