Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative and absolute advantage in smoothies.
B. Dan has the comparative and absolute advantage in sandwiches.
C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies.
D. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
Answer: B
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The information in the table shown:
This table shows the price-level adjustment as compared to the United States.
A. allows us to compare the standard of living in one country to another.
B. has been indexed to the United States.
C. shows that the typical good in Australia is more expensive than it is in the United States.
D. All of these statements are true.
The long-run Phillips curve corresponds to the vertical region of the long-run aggregate supply curve
a. True b. False Indicate whether the statement is true or false
An example of an industrial policy would be all except:
A. interest rate restrictions. B. trade barriers. C. tax breaks. D. subsidies.
The behavior expected in a competitive market includes
A. Little technological growth. B. Aggressive behavior among competitors to control prices. C. Very little entry and exit. D. Marginal cost pricing.