For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces
Which of the following is true about the comparative advantage between the two countries?
A) Australia has the comparative advantage in producing surfboards.
B) New Zealand has the comparative advantage in producing surfboards and boomerangs.
C) Australia has the comparative advantage in producing boomerangs.
D) New Zealand has the comparative advantage in producing boomerangs.
C
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According to economists, national defense can be supported through taxation because
A) national security generates no benefits for which any one would be willing to pay. B) people are insufficiently patriotic. C) taxation makes everyone pay in proportion to the benefits they receive. D) the people who refuse to pay the cost cannot easily be excluded from the benefits. E) we must choose between coercion through taxation and coercion through a draft.
James 16 wagons, 32 tricycles. Lucy 18 wagons, 24 tricycles Table 2-6 shows the output per week of two people, James and Lucy. They can either devote their time to making bracelets or making necklaces. 3) Refer to Table 2-6. Which of the following statements is true?
A) Lucy has a comparative advantage in making tricycles and James in making wagons. B) James has a comparative advantage in making both products. C) Lucy has a comparative advantage in making both products. D) Lucy has a comparative advantage in making wagons and James in making tricycles
The recession of 2007–2009 was the most severe economic downturn in the United States since the
A. 1930s. B. 1950s. C. 1970s. D. 1980s.
Refer to the above figure. If the market price is equal to A, which statement can be made about economic profits?
A. Economic profits are positive and equal to ABEF.
B. Economic profits are negative and equal to ABQ
0.
C. Economic profits are negative and equal to GCEF.
D. Economic profits are positive and equal to ABCG.