If John can produce 10 chairs or 20 lamps during a week while Mary can produce 12 chairs or 22 lamps in the same time, who has the absolute advantage in producing each good?
A) Mary in producing both goods
B) John in producing both goods
C) Mary in producing chairs, John in producing lamps
D) John in producing chairs, Mary in producing lamps
E) Both Mary and John in both goods
A
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One reason the supply of cell phones has increased is:
A. cell phone towers are much more common. B. better technology allows them to be produced more cheaply. C. consumer preferences for cell phones has increased. D. expectations of the near future are that no landlines will exist.
For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted. B. less easily the good can be substituted. C. more complement goods are available. D. less complement goods are available.
Which one of the following statements about public debt is most accurate?
a. Because rich and poor people hold government bonds, they are equally affected by the debt. b. Wealthy people are more likely to hold government bonds, and so they are less likely to be adversely affected by the debt c. Wealthy people are less likely to hold government bonds, and so they are more likely to be adversely affected by the debt. d. Poor people are more likely to hold government bonds, and so they are more likely to be adversely affected by the debt. e. Poor people are less likely to hold government bonds, and so they are less likely to be adversely affected by the debt.
Which of the following refers to transfer pricing by a multinational enterprise (MNE)?
A. The process of setting a high price for a good in a market with relatively inelastic demand and setting a low price in a market with relatively elastic demand B. Setting prices by the company for things that move between the units of the company C. The act of buying a good at a low price and selling it at a high price D. Lowering its product prices to undercut foreign competitors and gain a greater market share