Comparative advantage identifies the good for which the producer’s absolute advantage is relatively larger, or where the producer’s absolute _____________ disadvantage is relatively smaller.
a. competitive
b. profit
c. productivity
d. trade
c. productivity
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Supporters of globalization believe that free trade and international investment result in all countries raising their living standards
a. True b. False Indicate whether the statement is true or false
If a nation borrows $250,000 each in the first, fourth, and fifth year and repays $50,000 each in the second and the third year, the value of government debt at the end of the fifth year is _____
a. $500,000 b. $650,000 c. $100,000 d. $250,000
During the Great Depression of the 1930s, the unemployment rate reached more than _________ of the labor force
a) 25% b) 65% c) 45% d) 85%
Bonzo is in business for himself making and selling Easter baskets. His daily cost for wicker is $100 and his daily revenue is $120. Bonzo quit his job at the Basket Weaving factory where he earned $15 a day, to enter the Easter basket business. Given this information, we know that his accounting profit
a. is $120 and his economic profit is $105. b. and economic profit are both $20. c. is $20 and his economic profit is $5. d. and economic profit are both $5.