If the United States could produce 1/2 ton of potatoes or 1 ton of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, the country with the comparative advantage in producing wheat is ____ and the country with the absolute advantage in producing potatoes is ____
a. the United States; the United States
b. the United States; Ireland
c. Ireland; the United States
d. Ireland; Ireland
b
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Refer to Figure 5.4. Which consumption bundle would maximize the consumer's utility?
A. A
B. B
C. C
D. D
GDP per capita is
A. Investment as a percentage of GDP. B. The same as GDP per worker. C. Total GDP divided by total population. D. The population divided by total GDP.
To which of the following is a maximum price control most likely to be applied?
a. wages b. agricultural products c. alcohol d. rents
Which of the following is true of the paradox of thrift?
a) The paradox of thrift occurs when investment is not related to income. b) The paradox of thrift occurs when households intend to save less. c) The paradox of thrift causes consumers to save less. d) The paradox of thrift occurs when households intend to consume more