If Brazil has a comparative advantage in the production of coffee compared to the United States, then
A. the United States has an absolute advantage in the production of coffee.
B. Brazil can produce coffee at a lower opportunity cost than the United States.
C. Brazil also has an absolute advantage in the production of coffee.
D. the United States cannot produce coffee.
Answer: B
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Suppose that in an industry, firm X has 50 percent market share, firm Y has 35 percent market share, and firm Z has 10 percent market share. Which of the following mergers is NOT likely to be challenged by the Federal Trade Commission?
A) a merger between firms X and Y B) a merger between firms Y and Z C) a merger between firms X and Z D) Any merger of two firms among those firms is likely to be challenged.
Cost-push inflation is caused by a leftward shift of the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
An advantage of a consumption tax over the present tax system is that a consumption tax
a. raises more revenues. b. would save the government millions in administrative costs. c. places more of the tax burden on the wealthy. d. does not discourage saving.
In economics, money is defined as
A) the total value of one's assets in current prices. B) the total value of one's assets minus the total value of one's debts, in current prices. C) the total amount of salary, interest, and rental income earned during a year. D) any asset people generally accept in exchange for goods and services.