Suppose that the United States can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude that
a. the United States has a comparative advantage in the production of cars.
b. France has a comparative advantage in the production of wine.
c. the United States has an absolute advantage in the production of cars.
d. All of the above are correct.
d
You might also like to view...
A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies
a. enhance equality. b. enhance efficiency. c. increase the reward for working hard. d. All of the above are correct.
Which of the following is not a characteristic of a public good?
A. Nonrivalry in consumption. B. Available to nonbuyers C. Can be consumed only once D. Nonexclusivity
Economists need different models of the economy because:
A. The economy behaves differently depending on how much time has passed after a demand shock B. We need a different model to analyze a positive demand shock than we need to analyze a negative demand shock C. The way economic performance is measured of changes over time D. Prices tend to be less flexible over time
The opportunity cost of spending four hours at a movie theater watching a double feature the night before a final exam would be
A. the cost of the movie ticket. B. the cost of the subway fare to get to the theater. C. the price of the popcorn and candy bars you snuck into the theater. D. a higher grade on the exam.