Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country A specializes in bananas, and Country B specializes in tomatoes. The limits to the terms of trade that Country B would find acceptable are Country B will accept no:
A. less than 3 bananas for each tomato.
B. more than 1 tomato for every 3 bananas.
C. less than 1 tomato for every 3 bananas.
D. more than 3 bananas for each tomato.
Answer: A
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A) less than 5. B) equal to 5. C) greater than 5. D) equal to 20.
If the nominal interest rate is 7 percent and the real interest rate is -2.5 percent, then the inflation rate is
a. -9.5 percent. b. -4.5 percent. c. 4.5 percent. d. 9.5 percent.
A headline reads "Gasoline Prices Are Higher." A likely explanation for this event would be a(n):
a. Decrease in the supply of gasoline and an increase in the demand for gasoline b. Increase in the supply of gasoline and a decrease in the demand for gasoline c. Increase in the demand for and the supply of gasoline d. Decrease in the demand for and the supply of gasoline
In Porter's model of the determinants of national competitive advantage, he noted many US firms were led by people with ______ backgrounds, likely leading to US firms' lack of attention to improving manufacturing process and product design.
Fill in the blank(s) with the appropriate word(s).