Assume that maximum feasible hourly productions levels if all resources are utilized in the United States are either 3 yards of fabric or 9 bushels of wheat. Maximum feasible production levels if all resources are utilized in Japan are either 6 yards of fabric or 12 bushels of wheat. Based on this information
A. both nations will gain from specialization and trade, with the United States exporting wheat and Japan exporting fabric.
B. Japan should specialize in both products.
C. the United States will benefit from trading but Japan will not.
D. beneficial trade is absolutely impossible between the two countries.
Answer: A
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In December 2010, Kansas had a severe ice storm that caused electrical blackouts. The Fictitious Portable Generator firm of Lawrence had several portable generators that could be used by homeowners to provide electricity
Which of the following would be the fair-rules way to provide them? A) The government confiscates the generators owned by Fictitious and distributes them. B) Fictitious is forced by the state to rent the generators at half the normal rate. C) The state sets up a lottery to determine who rents the available generators at the normal rate. D) Fictitious rents generators at the equilibrium market price. E) Fictitious follows government commands about who gets to use the generators.
Interest rates and investment are actually observed to move most of time in ________, and this is explained by other factors affecting investment shifting the ________ curve to the right
A) the same direction, IS B) the same direction, LM C) opposite directions, IS D) opposite directions, LM
If demand is elastic and the price of a product decreases by 100 percent, then
A. the decrease in quantity demanded is greater than 0 percent. B. the change in quantity demanded is greater than 100 percent. C. the change in quantity demanded is equal to 100 percent. D. the change in quantity demanded is less than 100 percent.
The owner(s) of a corporation
A. are the shareholders. B. is the CEO. C. are the bondholders. D. is the entrepreneur.