If a nation does not have an absolute advantage in producing anything, it
a. has no comparative advantage either.
b. will have a comparative advantage in the activity in which it is least inefficient.
c. will try to get along without trade.
d. will export raw materials and import finished products.
b
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If the total cost of producing 6 units is $228 and the total cost of producing 7 units is $245, what is the marginal cost of producing the seventh unit?
a. $35 b. $245 c. $3 d. $38 e. $17
Refer to Table 4.1. If Mike starts with 3 CDs and 2 economics books, would he be willing to trade one CD for an economics book?
A. Yes, because the bundle with 2 CDs and 3 economics books is ranked higher than the bundle with 3 CDs and 2 economics books
B. No, because the bundle with 2 CDs and 3 economics books is ranked higher than the bundle with 3 CDs and 2 economics books
C. Yes, because the bundle with 3 CDs and 2 economics books is ranked higher than the bundle with 2 CDs and 3 economics books
D. No, because the bundle with 3 CDs and 2 economics books is ranked higher than the bundle with 2 CDs and 3 economics books
Under flexible exchange rates, the exchange rate is set by
A) the International Monetary Fund. B) the U.S. Federal Reserve's Board of Governors. C) the intersection of demand and supply curves in the currency markets. D) negotiations among central banks of the major industrial powers.
Suppose that jeans that were fashionable in the 1990s become unfashionable today. If other factors were held constant, then there would be in the market of jeans
A. a leftward shift in the demand curve. B. a rightward shift of the demand curve. C. a leftward movement along the supply curve. D. a rightward movement along the supply curve.