Refer to Figure 11-14. Which of the following could explain why the United States and China use different input combinations to produce a given quantity of cotton and yet, each country produces that quantity at the lowest possible cost?
A) because the United States has more sophisticated technology and therefore is more efficient in cotton production
B) because the prices of inputs are not the same for the two countries: labor is relatively lower-priced and capital is relatively higher priced in the United States
C) because the prices of inputs are not the same for the two countries: labor is relatively lower-priced and capital is relatively higher priced in China
D) because the marginal product per dollar spent on capital yields a higher return in the United States than in China
C
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________ is the narrowest monetary aggregate that the Fed reports
A) M0 B) M1 C) M2 D) M3
If the long-run Phillips curve is vertical, then any government policy designed to lower:
a. unemployment will not change the unemployment rate and only increase the inflation rate. b. unemployment will work leaving the inflation rate unchanged. c. inflation will cause employment to rise. d. unemployment will work causing the inflation rate to fall. e. unemployment will work causing inflation to rise.
Virtual Currency System 2 (VCS2) is poses a __________ risk to nations in which is it used because ___________________________
a. High; it can be used directly by end users to buy real-world goods and services. b. High, it weakens central banks' abilitiesto control their monetary bases. c. Low; it can be spent only in virtual worlds. d. Low; when it is exchanged for real-world currencies, only a small portion of the exchange actually influences the nation's monetary base. e. Medium; its conversion into real-world currencies causes only minor movements in nations' M2 money multiplier.
Which of the following is not a common resource?
a. elephants in the wild b. a narrow trail in a park c. a neighborhood garden d. Neither a nor b is a common resource.