Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil. We can conclude that
A) Honduras has a lower opportunity cost of producing bananas relative to Brazil.
B) Honduras also has an absolute advantage in producing bananas relative to Brazil.
C) Brazil has an absolute disadvantage in producing bananas relative to Honduras.
D) Labor costs are higher for banana producers in Brazil than in Honduras.
A
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The concept of utility:
A. cannot be used to explain why people are charitable. B. cannot be used to explain why people are altruistic. C. cannot be used to explain why people are selfish. D. None of these is true.
How long does it take a firm to get to the long run?
a. one week b. one month c. one year d. it depends on the firm--some firms may be less than a year, some more.
Which of the following occurs during a recession?
a. Output falls, employment rises, and unemployment rises. b. Output rises, employment falls, and unemployment falls. c. Output falls, employment falls, and unemployment rises. d. Output rises, employment rises, and unemployment falls. e. Output falls, employment falls, and unemployment falls.
Figure 9-2
The economy depicted in is
a.
operating at less than full employment.
b.
operating at more than full employment.
c.
in short-run equilibrium but not long-run equilibrium.
d.
in long-run equilibrium.