Given that Sandy can produce 10 economics reports or 2 sales calls and Tim can produce 2 economics reports or 1 sales call, which of the following is FALSE?
A) Sandy has a comparative advantage in sales calls.
B) Tim has a comparative advantage in sales calls.
C) Sandy has a comparative advantage in economics reports.
D) Sandy has an absolute advantage in both economics reports and sales calls.
A
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In long-run macroeconomic equilibrium, the
A) real wage rate has adjusted so that the economy is on the short-run aggregate supply curve but not on the long-run aggregate supply curve. B) long-run aggregate supply curve has shifted in response to a money wage rate increase so that potential GDP equals real GDP. C) aggregate demand curve adjusts to the point where the long-run aggregate supply curve and the short-run aggregate supply curve intersect. D) None of the above answers is correct.
All of the following are sources of comparative advantage except
A) technology. B) climate and natural resources. C) a strong foreign currency exchange rate. D) relative abundance of labor and capital.
Compared to England, the 19th century American manufacturing labor force was:
a. less likely to unionize. b. less mobile. c. less accepting of technological change in the workplace. d. less productive.
What effect do unions have on the labor market?
a. higher wages and fewer workers b. higher wages and more workers c. lower wages and fewer workers d. lower wages and more workers