If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then the U.S
A) a comparative advantage in the production of beer.
B) an absolute advantage in the production of beer.
C) a comparative advantage in the production of pizza.
D) a comparative advantage in the production of beer and pizza.
C
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The total number of workers in two different countries are equal. However, each worker in Country A is three times more productive than a worker in Country B. Which of the following is true in this case?
A) The capital stock in Country B is three times more than the capital stock in Country A. B) The total efficiency units of labor in Country A is three times more than the total efficiency units of labor in Country B. C) The total efficiency units of labor in Country A is one-third of the total efficiency units of labor in Country B. D) The total efficiency units of labor in Country B is six times more than the total efficiency units of labor in Country B.
Refer to Table 2.4. Increasing the tanks of fertilizer from 4 to 5 will
A) decrease truckloads of potatoes. B) increase truckloads of potatoes. C) have no effect on truckloads of potatoes. D) require more acres of land.
Given total cost and the quantity of output, marginal cost and average cost can be determined
a. True b. False Indicate whether the statement is true or false
When there is a surplus in a market, prices are likely to fall because:
A.) Buyers do not wish to buy as much as sellers want to sell. B.) Some buyers will offer to pay a higher price, initiating a move up the supply curve. C.) Sellers are likely to increase their production. D.) Buyers will wait for the government to establish a price floor.