If Italy can produce grapes at a lower opportunity cost than any other nation, Italy is said to have a(n) ________ in the production of grapes.
A. autarky
B. absolute advantage
C. comparative disadvantage
D. comparative advantage
Answer: D
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Alexander Hamilton argued for a "National Bank" that would
a. provide the increased money supply necessary to accommodate increased business activity. b. lend money to the U.S. Treasury. c. serve as fiscal agent for the U.S. government. d. serve as a tax collection agency for the U.S. government. e. All of the above.
_____ gives the slope of an isocost line where labor (L) and capital (K) are the two inputs measured on the X and Y axes respectively
a. The ratio of the marginal product of capital to the marginal product of labor, with a negative sign, b. The ratio of price of labor to the price of capital, with a negative sign, c. The ratio of the price of capital to the price of labor d. The ratio of the marginal product of labor to the marginal product of capital
It is impossible to have economic growth unless a country or a region has abundant natural resources to sustain the growth
a. True b. False Indicate whether the statement is true or false
A point inside a nation's production possibilities curve can represent:
a. a recession. b. an increase in population size. c. an economic growth. d. a technological advancement. e. an improvement in living standards.