Refer to Table 2-12. Does either Guatemala or Honduras have an absolute advantage and if so, in what product?
A) Honduras only has an absolute advantage in producing sailboats.
B) Guatemala has an absolute advantage in producing both products.
C) Guatemala only has an absolute advantage in producing canoes.
D) Honduras only has an absolute advantage in producing canoes.
B
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In country A, the government takes no action to influence the exchange rates of its currency with other currencies. The rate is determined by market forces. Country A is said to have a:
A) flexible exchange rate system. B) fixed exchange rate system. C) dirty-float exchange rate system. D) nominal exchange rate system.
When airlines overbook a flight and passengers are paid to take a later flight, which category of passenger is most likely to give up their reservations?
A) Passengers not in a hurry B) Poor passengers C) Selfish passengers D) Unselfish passengers E) Wealthy passengers
The marginal dollar cost to a patient of visiting a doctor when the patient's bill will be paid entirely by insurance is
A) the same as if the patient had no insurance. B) the value of the care not received by some other patient who couldn't get an appointment. C) zero. D) zero only if the patient does not pay the insurance premiums.
The elasticity approach to measuring the sensitivity of quantity demanded to changes in price differs from using the slope because the elasticity approach calculates the ratio of the
a. absolute change in price to the absolute change in quantity demanded b. absolute change in quantity demanded to the percentage change in price c. absolute change in quantity demanded to the percentage change in price d. percentage change in quantity demanded to the percentage change in price e. average change in price to the average change in quantity demanded