An economy is said to have a comparative advantage in producing a particular good if it:
A) can produce more of all goods than another economy.
B) can produce less of all goods than another economy.
C) has the highest cost for producing that good.
D) has the lowest cost for producing that good.
Ans: D) has the lowest cost for producing that good.
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Based on the table above, the CPI for 2014 is
A) 105.1. B) 98.5. C) 5.0 percent. D) 100. E) 102.5.
Refer to Figure 21-5. "Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above
A) A to B B) C to A C) B to A D) B to C
Suppose that florists and landscape workers are not unionized. If florists unionize, then the wages of
a. florists will rise, and the wages of landscape workers will fall. b. florists will fall, and the wages of landscape workers will rise. c. both florists and landscape workers will rise. d. both florists and landscape workers will fall.
Three basic decisions must be made by all economies. What are they?
What will be an ideal response?