Refer to Figure 2-8. Which country has a comparative advantage in the production of pineapples?
A) Costa Rica B) Guatemala
C) They have equal productive abilities. D) neither country
A
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In the circular flow model of an economy, households
A) receive income from buyers of goods and services. B) receive income from the sale of factors in the goods markets. C) pay firms for the use of their factors. D) receive income from producers for the use of factors in the factor markets.
Human capital is:
A. the factories and machinery made by workers. B. the talents, training, and education of workers. C. the factories and machinery used by humans in the production process. D. the financial resources available to humans for investment.
Holding other factors constant, an increase in the capital stock ________ the real wage and ________ employment.
A. increases; does not change B. decreases; increases C. increases; increases D. increases; decreases
Which of the following would qualify as an aggregate supply shock?
A. An unexpected surge in consumer confidence B. An unexpected decrease in oil prices C. A seasonally expected decrease in oil prices D. An anticipated tax cut