The production possibilities curves illustrated in Figure 35.2 reveal that
A. Mexico has no comparative advantage.
B. Mexico has a comparative advantage in baseballs.
C. The United States has an absolute advantage in both goods.
D. The United States has no comparative advantage.
Answer: C
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High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of WorkersChairs Produced Per Hour00110218324428530For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $70?
A. 3 B. 4 C. 1 D. 2
To enter a local cable television market, a firm needs a license from the city government. This is an example of
A) a natural monopoly. B) the government maintaining consistent standards in the broadcast industry. C) a government-imposed barrier. D) occupational licensing.
A sudden decrease in the U.S. price level
A) makes creditors in dollars better off. B) makes creditors in dollars worse off. C) do not affect creditors in dollars. D) makes creditors in DM better off. E) makes those with dollar debts better off.
Microeconomics studies the allocation of
A) decision makers. B) scarce resources. C) models. D) unlimited resources.