In Table 17.2, 
A. the United States has an absolute advantage in both goods but a comparative advantage in apples only.
B. the United States has an absolute and comparative advantage in both goods.
C. Brazil has an absolute advantage in both goods but a comparative advantage in coffee only.
D. the United States has an absolute and comparative advantage in apples while, Brazil has an absolute and comparative advantage in coffee.
Answer: A
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The primary purpose of antitrust legislation is to:
a. protect small business. b. protect the competitiveness of U.S. business. c. protect the prices of American-made products. d. ensure American labor is paid a fair wage. e. ensure firms earn only a fair profit.
If an economy were experiencing a high rate of unemployment as the result of insufficient aggregate demand, a Keynesian economist would favor:
a. a reduction in taxes coupled with a reduction in government expenditures of equal size. b. an increase in government expenditures coupled with an increase in taxes of equal size. c. a reduction in taxes, without any offsetting reduction in government expenditures. d. maintenance of a balanced budget.
If consumers are loyal to the products of an existing firm, this loyalty may
a. reduce the incentives for the firm to invest b. result in more responsive management and better quality products c. reduce the demand for imported goods d. serve as a barrier to new entry into the market e. force the firm to produce at higher costs
As distinct from Medicare, Medicaid is a
a. federally funded, state-administered program that pays medical and hospital costs for welfare recipients and other low-income people b. federally funded and federally operated program that pays medical and hospital costs for welfare recipients and other low-income people c. state-funded and state-operated program that pays medical and hospital costs for welfare recipients and other low-income people d. federally funded and federally operated program that pays medical and hospital cost for elderly (over 65) welfare recipients e. state-funded program which pays the medical and hospital costs for elderly (over 65) welfare recipients