Certain kinds of tropical fruits are impossible to grow outdoors in the United States. Suppose, however, that in order to create jobs in Wyoming, the U.S. government offered extensive subsidies to firms to produce bananas
With the subsidies, firms could build greenhouses and offer the fruit at world prices. A) The United States now has a comparative advantage in bananas.
B) The United States has a comparative advantage, but is not competitive.
C) The United States is competitive, but does not have a comparative advantage.
D) The United States has a comparative advantage and is competitive.
E) None of the above.
C
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People in the U.S. will rarely pay a great deal per gallon to obtain water because
A) there are so many excellent substitutes for water. B) there is no relationship between objective price and subjective value. C) they are usually creatures of habit. D) they think water, as a basic necessity, ought to be supplied at a very low price. E) they place a very low marginal value on water.
Many East Asian currencies during the 1990s were
a. allowed to float freely b. pegged to the Japanese yen c. pegged to the U.S. dollar d. pegged to gold e. none of the above
Briefly describe the key economic features of the European Union.
What will be an ideal response?
Which of the following best describes the income velocity of money?
A. V = Y B. V = Ms/PY C. V = PY/Ms D. V = PMs