Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country A has the absolute advantage in the production of:
A. iPods only.
B. tablets only.
C. both iPods and tablets.
D. neither iPods nor tablets.
A. iPods only.
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An investment pays $100 at the end of each of the three next years. No additional payments will ever be made. If the annual interest rate is 5 percent, the present value of the investment is approximately
A) $250. B) $272. C) $288. D) $300.
Use the equations for public and private saving to demonstrate how total saving in the economy equals investment
What will be an ideal response?
Investment is the least volatile component of aggregate spending in the economy
Indicate whether the statement is true or false
Ceteris paribus, an increase in the U.S. demand for Greek goods in Figure 36.1 will
A. Result in a movement from M to R on the supply curve for dollars. B. Increase the dollar price of euros above $2 = 1 euro. C. Make U.S. goods more expensive to Greek residents. D. Result in a movement from M to N on the demand curve for dollars.