Assume the United States and Canada have the same amount of resources. In a given time period, the United States can produce 3 tons of steel or 300 tons of wheat. Canada can produce 4 tons of steel or 400 tons of wheat. This means that
A. The United States has a comparative advantage in steel.
B. Canada has an absolute advantage in both steel and wheat.
C. Canada has a comparative advantage in steel.
D. The United States has an absolute advantage in steel.
Answer: B
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Refer to the table below. What is the profit-maximizing number of resort units for Gorgeous Sands Resort during the peak period?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) 350
B) 300
C) 250
D) 200
A direct relationship is expressed graphically as a:
a. positively sloped line or curve. b. negatively sloped line or curve. c. horizontal line. d. vertical line.
Carla's Candy Store is maximizing profits by producing 1,000 pounds of candy per day. If Carla's fixed costs unexpectedly increase and the market price remains constant, then the profit-maximizing level of output
a. is less than 1,000 pounds b. is still 1,000 pounds c. is more than 1,000 pounds d. will increase e. cannot be determined without more information
According to the policy irrelevance proposition, monetary policy can affect real variables
A. only in the short run when the policy is unanticipated. B. in the long run only. C. in both the short run and the long run. D. as long as the policy is fully anticipated.