Cheese (units) Bread (units) England 40 20 Spain 20 5 The table above shows how much each of two countries can produce in 40 hours. (For example, England can produce 40 units of cheese in 40 hours.) England has an absolute advantage in __________ and the Spain has an absolute advantage in __________.
a. bread, cheese
b. both goods, neither good
c. cheese, both goods Incorrect. Please review Top Ten Concept # 2.
d. both goods, cheese Incorrect. Please review Top Ten Concept # 2.
e. neither good, bread
e. neither good, bread
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For the perfectly competitive broccoli producers in California, the market demand curve for broccoli is
A) a horizontal line. B) downward sloping. C) nonexistent. D) upward sloping. E) the same as the demand curve each firm faces.
If pollution is bad, why do we still use pollution-causing resources such as coal and oil to generate electricity?
A) Governments lack the political will to enforce the use of pollution free resources. B) The cost of using pollution free resources to generate power in many circumstances is much higher than generating that same power through conventional pollution-causing means. C) Pollution is only a private cost. D) The transaction costs of pollution is too low.
If a cut in prices increases total revenue in the short run, what will it do to total revenue in the long run? a. It will decrease total revenue in the long run
b. It will increase total revenue in the long run. c. It will leave total revenue unchanged in the long run. d. Any of the above results are possible in the long run.
An increase in government spending will lead to which of the following?
a. an increase in equilibrium GDP, a decrease in money demand, a decrease in the interest rate, and an increase in investment spending b. a decrease in equilibrium GDP, a decrease in money demand, an increase in the interest rate, and a decrease in investment spending c. an increase in equilibrium GDP, an increase in money demand, an increase in the interest rate, and an increase in investment spending d. a decrease in equilibrium GDP, a decrease in money demand, a decrease in the interest rate, and an increase in investment spending e. an increase in equilibrium GDP, an increase in money demand, an increase in the interest rate, and a decrease in investment spending