Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.)
A) The United States has a comparative advantage in bicycle production.
B) The United States has a comparative advantage in producing both goods.
C) Mexico has a comparative advantage in producing bicycles.
D) Mexico has a comparative advantage in producing both goods.
C
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The "Made in the USA" campaign was popularized by unions in an effort to influence which determinant of demand?
A. Incomes B. Preferences C. Expectations of future prices D. Prices of related goods
After an increasing cost industry responds to an increase in demand, in the long run the equilibrium price will be ______ than before the demand increase
a. higher b. lower c. the same as d. impossible to predict
Normative economics deals with _________ and positive economics deals with _________
a. "what should be" topics or issues; "what is" topics or issues b. abstractions of reality; reality c. microeconomics; macroeconomics d. negative economic outcomes; positive economic outcomes e. changing economic conditions; unchanging economic conditions
Legislation to protect red-cockaded woodpeckers created incentives that resulted in premature harvesting of trees the woodpeckers like to nest in. This is an example of which of the following?
a. Association is not causation. b. the fallacy of composition c. the use of ceteris paribus conditions in economic analysis d. Good intentions do not always lead to desirable outcomes.