Country A would have an absolute advantage compared to Country B in the production of corn if
A. Country A uses fewer resources to produce corn than Country B does.
B. the demand for corn is higher in Country A than in Country B.
C. corn can be produced at lower cost in terms of other goods than it could be in Country B.
D. corn sells for a higher price in Country A than in Country B.
Answer: A
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If tofu is a normal good, an increase in income will:
a. cause tofu to sell at a lower price. b. increase the production of tofu. c. shift the demand curve for tofu to the left. d. shift the demand curve for tofu to the right. e. rotate the supply curve in a clockwise manner.
According to Coasian reasoning, if negotiation is costless:
a. irrespective of the initial distribution of rights, the efficient outcome will minimize the net benefit of the group. b. the efficient outcome will minimize the net benefit of the individual who has more rights compared to the others in the group. c. irrespective of the initial distribution of rights, the efficient outcome will maximize the net benefit of the group. d. the efficient outcome will maximize the net benefit of the individual who has more rights compared to the others in a group.
Headline inflation is:
A. core inflation with the prices of food and gasoline added in. B. limited measure of inflation in the economy. C. used only by the media for discussing inflation. D. not a generally accepted measure of inflation.
Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have data for price (P), MR, ATC, MC, AVC, at the quantity of 1,000 breads a day. The firm's total profit is calculated by
a. P – AVC b. P – ATC c. P – MC d. (P – ATC)Q e. TR – TVC