Jayden can produce 10 pens or 20 pencils in one hour while Alexander can produce 15 pens or 5 pencils in one hour. Which of the following statements is correct?
a. Alexander has a comparative advantage over Jayden in the production of pencils
b. Alexander has a comparative advantage over Jayden in the production of pens
c. Jayden has a comparative advantage over Alexander in the production of pens
d. Alexander and Jayden cannot gain from specialization and exchange.
B
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A decrease in the money supply:
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP. b. lowers the interest rate, causing a decrease in investment and an increase in GDP. c. raises the interest rate, causing an increase in investment and a decrease in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
Which of the following is not a resource for a society?
a. capital goods, like factories and machine tools b. entrepreneurship c. legal institutions d. labor
In a market economy, the _______ determines who gets the goods and services produced.
a) Magical hand b) Government c) Market mechanism d) Stock market
The United States has roughly how much of the world's population?
A. 10 percent. B. 15 percent. C. 20 percent. D. 5 percent.