Iceland can produce 32 units of food per person per year or 8 units of clothing per person per year, but Lavaland can produce 16 units of food per year or 8 units of clothing. Which of the following is true?
a. Iceland has both a comparative and absolute advantage in producing food
b. Iceland has a comparative advantage, but not an absolute advantage in producing food.
c. Lavaland has both a comparative and absolute advantage in producing clothing.
d. Lavaland has both a comparative and absolute advantage in producing food.
a
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a. A pollution charge placed on specific amounts of pollution b. A marketable permit program c. Strongly defined private property rights d. Specific types of technology used
According to the law of supply, a rise in the price of a good or service almost always leads to an increase in the quantity supplied of that good or service, while a fall in price will decrease the quantity supplied
a. True b. False Indicate whether the statement is true or false
The answer is: "It is sometimes in the best interest of business firms to pay their employees higher-than-equilibrium wage rates." What is the question?
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The pool of information collected by financial markets is usually:
A. valuable and not made available until the parties pay for it. B. only available to lenders. C. more than a borrower needs to make a loan. D. summarized in the form of a price.