If Country A can produce a unit of good 1 at a lower opportunity cost than can Country B, it is correct to state that Country A
A. has a comparative advantage in producing good 1.
B. will import good 1 from country Y.
C. has an absolute advantage in producing good 1.
D. will not produce good 1.
Answer: A
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Refer to Figure 9.1. If the market is in equilibrium, total consumer and producer surplus is
A) $0. B) $100. C) $800. D) $1200. E) $2000.
Government antitrust laws were designed to
a. encourage the production of public goods b. prevent natural monopolies c. prevent collusion among firms d. regulate natural monopolies e. correct the outcomes of positive and negative externalities in private markets
A consultant who earns $100 per hour takes four hours off work to go to the movies. The out-of-pocket cost for the cab and the movie ticket are $12 . The total cost of the movie to the consultant is
a. $12 b. $412 c. $400 d. $388 e. $112
Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely
a. have no impact on the growth rate of real GDP per person. b. decrease the growth of real GDP per person for a few years. c. increase the growth of real GDP per person for several decades. d. permanently increase the growth rate of real GDP per person.