Suppose England has a comparative advantage over the United States in producing tea. If this is true, then:
A. England should produce more tea than it wants and sell the rest to the United States.
B. England should produce a small amount of tea and buy the rest of the tea it wants from the United States.
C. England should not produce tea, and should instead buy it all from the United States.
D. the United States has nothing to gain from buying tea from England.
A. England should produce more tea than it wants and sell the rest to the United States.
You might also like to view...
When the president of the Bank of America addresses Congress regarding lending standards in that industry, he is discussing
A) a macroeconomic topic. B) a microeconomic topic. C) incentives. D) the big tradeoff.
An increase in the foreign price of the U.S. dollar is called:
a. depreciation of the U.S. dollar. b. appreciation of the U.S. dollar. c. appreciation of the foreign currency. d. readjustment of the U.S. dollar. e. readjustment of the foreign currency.
The velocity of money is
a. the rate at which the Fed puts money into the economy. b. the same thing as the long-term growth rate of the money supply. c. the money supply divided by nominal GDP. d. the average number of times per year a dollar is spent.
Refer to the market graph below for tickets to a "Final Four" sports event. Given this market, if the event organizers pre-set the price at $20, then this action would result in a:
The graph below shows the market for tickets to a "Final Four" sports event. Assume that there is only one kind of ticket to the event.
A. Shortage of 5,000 units
B. Shortage of 55,000 units
C. Surplus of 5,000 units
D. Surplus of 50,000 units