Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Lavaland can produce 24 units of food per year or 12 units of clothing. Which of the following is true?
A. Iceland has both a comparative and absolute advantage in producing food.
B. Iceland has a comparative advantage, but not an absolute advantage in producing food.
C. Lavaland has both a comparative and absolute advantage in producing clothing.
D. None of the above are true.
D. None of the above are true.
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A competitive market is one:
A) that operates with little or no government control. B) where almost all exchanges take place involuntarily. C) that has price controls imposed by a ruling authority. D) where determination of equilibrium quantity need not rely on the forces of demand and supply.
Mobutu Sese Seko was President of ________
A) Canada B) Zaire C) Cote d'Ivoire D) Tajikistan
Which of the following variables will shift the classical aggregate demand curve?
a. An increase in government spending b. A decrease in taxes c. An increase in autonomous investment expenditures d. An increase in the money stock e. All of the above
Suppose nominal GDP in 2009 does not change (compared its previous level in 2008). Given this information, we know with certainty that
A) real GDP increased during 2009. B) the GDP deflator increased during 2009. C) both the GDP deflator and real GDP fell during 2009. D) more information is needed to answer this question.