Refer to Table 2-20. If the two countries specialize and trade, who should export wristwatches?
A) Japan
B) There is no basis for trade between the two countries.
C) Thailand
D) They should both be importing wristwatches.
C
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Suppose that country X can produce 1,000 pounds of flour per hour, or catch 500 pounds of fish per hour. In contrast, country Y can produce 1,800 pounds of flour per hour, or catch 300 pounds of fish per hour. If both countries specialize in their comparative advantage and trade, by how much combined output of fish and flour per hour be greater than if there were no trade and the countries divide
an hour of time equally between each output? a. 200 pounds of flour and 200 pounds of fish. b. 400 pounds of flour and 100 pounds of fish. c. 50 pounds of flour and 50 pounds of fish. d. 160 pounds of flour and 200 pounds of fish.
Monetization of the deficit (or debt) means that
a. the government uses monetary policy to control the economy rather than fiscal policy. b. inflation accounting corrects for price increases. c. the Fed buys newly issued debt and increases the money supply. d. the amount of money in circulation is equal to the size of the debt.
Suppose a firm has a weekly cost function of C(Q) = 8Q + (Q2/100) and a marginal cost function of MC = 8 + (Q/50). What is the efficient scale of production, and what is the minimum average cost?
A. Qe = 0; AC = $0 B. Qe = 0; AC = $8 C. Qe = 8; AC = $8 D. Qe = 8; AC = $64.64
Based on this graph, deficit spending usually ______.
a. ends before a recession ends
b. continues after the end of a recession
c. does not occur during a recession
d. ends before a recession starts