Refer to the table above. If countries were to trade along the lines of comparative advantage
A) B would export Y to A.
B) A would import X from A.
C) neither country would want to trade.
D) More information is needed to determine the pattern.
A
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The price elasticity of demand is calculated as:
A) the change in price divided by the change in quantity demanded. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the percentage change in quantity demanded divided by the percentage change in price.
Which of the following is true?
A) In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks. B) The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time. C) Stock market investors can reduce their risk if they hold shares of specific stocks for only short periods of time. D) People who invest in the stock market are virtually certain to make money.
Based on Table 3.1, the pre-trade relative price of a computer in Mexico is
A) three pairs of shoes. B) one pair of shoes. C) one-half pair of shoes. D) one-third pair of shoes.
The farmer pays $0.2 for the seed that is sold to the miller for $0.45; the miller makes flour and sells it to the baker for $0.55. The baker makes bread and sells it to the grocery store for $1.00 and the store sells it to consumers for $1.25. Gross Domestic Product (GDP) is
A. $2.20. B. $1.25. C. $2.00. D. $1.00.