Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
B. Dan has the comparative and absolute advantage in sandwiches.
C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies.
D. Dan has the comparative and absolute advantage in smoothies.
Answer: B
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In 2011, the U.S. federal government collected approximately how much in total tax receipts?
a. $800 million b. $2.5 billion c. $5.2 billion d. $8.7 billion
Which of the following is TRUE?
A) A common market is more deeply integrated than a customs union. B) The European Union is a shallower and broader form of integration than NAFTA. C) NAFTA is an example of a customs union. D) Customs unions require the creation of a common currency.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
From 2001 to 2015, the annual rate of inflation in the United States has averaged less than 1 percent.
Answer the following statement true (T) or false (F)