Assume that Nation X can produce either 40 notepads or 80 pens, and that Nation Y can produce either 10 notepads or 40 pens. This implies that
A. Nation X has a comparative advantage in producing pens.
B. Nation Y has a comparative advantage in producing notepads.
C. Nation Y is the high-cost producer of pens.
D. Nation X has a comparative advantage in producing notepads.
Answer: D
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Suppose you were the president of the Dayton National Bank, the only bank in Dayton, Ohio. You wanted to borrow money from the Fed. You pick up the phone to ask the Fed what today's _____________ is because that's the rate the Fed charges member banks who borrow from it
a. prime rate b. federal funds rate c. discount rate d. federal reserve rate e. federal bank rate
Which of the following is an example of a progressive tax?
a. The federal personal income tax b. The federal tax on gasoline c. All of the answers are correct. d. The excise tax on cigarettes
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Acme Manufacturing: TC = 100 + 3Q. Generic Industries: TC = 500 + 3Q. Suppose that Acme and Generic face the same demand curve. If each firm produces its profit-maximizing level of output and earns a positive economic profit, then which of the following statements is true?
A. Generic will produce more output than Acme. B. Acme and Generic will produce the same quantity, but Acme will have higher profits. C. Acme and Generic will produce the same quantity and will have the same profits. D. Acme will produce more output than Generic.
Figure 10.4, shown below, presented data on 62 countries' inflation rates relative to the U.S. rate of inflation and the percent change in the exchange rate for the years 1980-2010. What was the relationship between these two variables?
What will be an ideal response?