Refer to the information provided in Figure 33.2 below to answer the question(s) that follow.
Figure 33.2Refer to Figure 33.2. England has
A. a comparative advantage in producing cars.
B. no comparative advantage in producing either cars or trucks.
C. a comparative advantage in producing trucks.
D. an absolute advantage in producing cars.
Answer: C
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The ability to produce a product at a lower resource cost than another nation can produce the same product is called comparative advantage
Indicate whether the statement is true or false
What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if the price of synthetic textiles declines?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
Refer to Figure 4-1. If the market price is $1.50, what is Arnold's consumer surplus?
A) $1.50 B) $2.25 C) $3.00 D) $4.75
Anthony and Kelly decide to watch a movie on Netflix using a promotion code so they do not need to pay for that movie. We know that
A. neither bears an opportunity cost since neither needs to pay for the movie. B. both bear an opportunity cost that depends on what each person is giving up to watch the movie. C. both bear the same opportunity cost because they are seeing the same thing. D. both bear the same opportunity cost because the tickets have the same face value.