Exhibit 15-2 Production possibilities curves for U.S. and Mexico
As shown in Exhibit 15-2, the United States has a comparative advantage over Mexico in:
A. wheat, but not in cloth.
B. cloth, but not in wheat.
C. both wheat and cloth.
D. neither wheat nor cloth
Answer: A
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The general rule for benefit maximization suggests that in personal equilibrium:
A) the ratio of total benefits to price should be identical across all goods. B) the ratio of total benefits to income should be identical across all goods. C) the ratio of marginal benefits to price should be identical across all goods. D) the ratio of marginal benefits to income should be identical across all goods.
Refer to the following graphs. If aggregate expenditures is equal to consumption plus investment expenditures then the equilibrium level of real income will exist at
a. Y1.
b. Y2.
c. Y3.
d. Y4.
Refer to the labor market in Figure 33.5. Suppose that the government imposes a payroll tax on employers in this market. How much of the tax burden will the employers actually pay?
A. $8 - $7 = $1 per hour. B. $10 - $7 = $3 per hour. C. $10 - $8 = $2 per hour. D. None. The employers will pass the entire burden onto the workers.
Only the federal government can create money.
Answer the following statement true (T) or false (F)