Refer to the information provided in Table 20.4 below to answer the question(s) that follow.
Table 20.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 20.4. Chile has
A. a comparative advantage in beer production.
B. a comparative advantage in wine production.
C. an absolute advantage in wine production.
D. an absolute advantage in beer production.
Answer: B
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Refer to above figure. Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter?
What will be an ideal response?
A permanent decrease in demand for convenience store services is likely to cause which of the following in the long run?
a. an economic loss for each firm b. a higher price for each firm's output c. fewer firms in the industry d. more firms in the industry e. economic profit for each firm
The fact that movie star Tom Cruise's salary is much higher than the salary earned by a Nobel prize winning economics professor can be explained by the
a. existence of noncompeting labor markets b. elimination of noncompeting labor markets c. failure of the market to reward talent fairly d. fact that wage rates cannot reflect the influence of education in labor markets e. willingness of some people to accept a lower wage rate in order to do what they like most to do
When multiple countries are trying to boost their economies by lowering the value of their currency, it causes a situation referred to as:
A. speculative war. B. competitive revaluation. C. a speculative attack. D. competitive devaluation.