Comparative advantage is based on the
A) concept that some countries are superior to others.
B) concept of absolute advantage of producing goods in different countries.
C) concept of relative opportunity cost of producing goods in different countries.
D) concept that some countries are better endowed with natural resources.
C
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The data in the table above give two points on the demand curve for pizza. Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the price elasticity of demand?
A) 0.5 B) 0.6 C) 0.9 D) 2.1 E) 8.6
Public goods are usually provided by
a. private industry in private markets b. the government c. producers who produce for consumers, that is, for the public d. internal markets e. the public, such as you and your neighbors
Refer to the accompanying graph. If this firm is a price taker, then when the price of each unit of output is $30, how much profit does this firm earn at its profit-maximizing level of output?
A. $800 B. $1,600 C. $1,200 D. $500
Is this an inflationary gap or a recessionary gap?
