Assume that Nation X can produce either 40 notepads or 80 pens, and that Nation Y can produce either 10 notepads or 40 pens. This implies that:
A. Nation X has a comparative advantage in producing pens
B. Nation Y has a comparative advantage in producing notepads
C. Nation X has a comparative advantage in producing notepads
D. Nation Y is the high-cost producer of pens
C. Nation X has a comparative advantage in producing notepads
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Remittances to foreign countries from legal and illegal residents of the U.S. are examples of ________
A) factor payments B) exports C) imports D) transfer payments There are two countries - Earthland and Plutoland - who trade only with each other. Residents in Earthland purchased buildings worth $10 billion in Plutoland during a certain year. None of the other transactions between the two countries during that year involved purchase or sale of assets.
The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the deadweight loss?
A) area A B) area B C) area C D) area D E) area E
Macroeconomics emerged as a separate subject largely in response to:
A. Irving Fisher's development of the quantity theory of money. B. Adam Smith's The Wealth of Nations. C. John M. Keynes's explanation of business cycles. D. Alfred Marshall's distinction between the long run and short run.
You borrow $10,000 at an interest rate of 5% to open a snow cone stand. You will earn an economic profit if
A. the return on your investment is 5%. B. the return on your investment is greater than 5%. C. the return on your investment is between 0 and 5%. D. the return on your investment is 10% or greater.