Suppose Japan exports televisions to the United States and imports sugar from Argentina. This situation suggests
a. Japan has a comparative advantage relative to the United States in producing televisions, and Argentina has a comparative advantage relative to Japan in producing sugar.
b. Japan has a comparative advantage relative to the United States in producing sugar, and Argentina has a comparative advantage relative to Japan in producing televisions.
c. Japan has an absolute advantage relative to the United States in producing televisions, and Argentina has an absolute advantage relative to Japan in producing sugar.
d. Japan has an absolute advantage relative to Argentina in producing sugar, and the United States has an absolute advantage relative to Japan in producing televisions.
a
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Elasticity provides a guide to both
A. market stability and change in revenue as price changes. B. responsiveness of quantity demanded to a change in price and market stability. C. responsiveness of quantity demanded to a change in price and change in revenue as price changes. D. technological change and change in revenue as price changes.
If the supply curves for the following goods were plotted, they all would slope upward except one. Which is the exception?
a. red Corvettes b. yogurt c. diamond rings d. original copies of the Mona Lisa e. wine from Greece
A stable monetary environment will typically lead to a. inflation
b. producers and consumers better coordinating their decisions through markets. c. independence of central banks. d. increased trade deficits and limited budgets deficits.
The official definition of a recession is when real GDP declines for two consecutive quarters
a. True b. False