U.S. U.K Wheat 12 6 Cloth 6 18 The table above shows United States and United Kingdom production of wheat (bushels per hour) and cloth (yards per hour). In order for both countries to gain from trade, one bushel of wheat must trade for
A) between 6 and 18 yards of cloth.
B) between 1/2 and 2 yards of cloth.
C) between 1/3 and 3 yards of cloth.
D) between 1/2 and 1/3 yards of cloth.
D
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Refer to the above figure. A farmer has 50 acres of land on which to grow wheat or beans. An acre of land yields 400 bushels of beans or 800 bushels of wheat
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If a person's labor supply curve is positively sloped, the income effect outweighs the substitution effect
a. True b. False
If Howard takes out a $400 loan for one year at 5 percent interest annually, he will pay back a total of:
A. $400. B. $440. C. $420. D. $20.
NAFTA or GATT disagreements are settled at the United Nations
Indicate whether the statement is true or false