According to the information contained in the table, Brazil has an absolute advantage in
A. coffee, while Columbia has an absolute advantage in hot dogs.
B. both coffee and hot dogs.
C. neither coffee nor hot dogs.
D. hot dogs, while Columbia has an absolute advantage in coffee.
B. both coffee and hot dogs.
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If you exhibit endowment effect, then you
A) decide rationally when making decisions about selling but not when making decisions about buying. B) have a strong attachment to things you already own. C) buy something you cannot afford. D) decide rationally when making decisions about buying but not when making decisions about selling.
The "lemons problem" in the used car market arises from
A) the difficulty U.S. producers have in making reliable cars. B) the difficulty buyers have in distinguishing good cars from lemons. C) the tendency of buyers of used cars to pay for them with bad checks. D) the reluctance of many car dealers to handle used cars.
If a firm in a perfectly competitive market faces a market price of $5, and it decides to produce 400 units, the firm's total revenue will be:
A. $2,000. B. $5. C. $405. D. $400.
If the MPC is 0.5, then the spending multiplier must be:
A. 2.25. B. 2.5. C. 2. D. 1.2.