Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. According to comparative advantage,
a. Tom should kill more birds and fish less, then trade birds for fish.
b. Tom should kill fewer birds and fish more, then trade fish for birds.
c. Both, Tom should
kill more birds and fish less.
d. Both, Tom should kill fewer birds and fish more.
a
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Screening refers to
a. private schools selecting only the students who are easiest to teach b. employers requiring a high-school diploma as a way of rejecting unqualified applicants c. governments deciding who should receive health care d. universities using standardized testing to decide who should enter e. none of the above
Explain why companies that choose low-pollution technologies will find it hard to survive in a competitive industry
Exports minus imports define a country's
A. Trade balance. B. Balance of payments. C. Capital account balance. D. Current account balance.
If there is an increase in government spending, then, ceteris paribus, the IS curve:
A) will shift to the left. B) will shift to the right. C) will not shift at all. D) will shift to the left if there is a corresponding decrease in taxes.