Real income is ________
A) equal to money income minus taxes
B) equal to the income earned legally
C) equal to money income plus benefits minus taxes
D) the maximum amount of goods and services that a household can afford
D
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If 50 units of resources can produce either 1 ton of sugar beets or 100 lb. of ham in Germany, while 90 units of resources can produce either 2 tons of sugar beets or 300 lb. of ham in Poland,
a. Poland has a comparative advantage in producing both goods b. Germany has a comparative advantage in producing sugar beets c. neither country has an absolute advantage in producing sugar beets, but Poland has an absolute advantage in producing ham d. Germany can produce more ham than Poland can e. mutually beneficial international trade is not possible
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. If Larry were to decrease the production of lassos, which of the following is true regarding the company's costs?
A. The fixed cost of the rope cutting machine would stay the same. B. The variable costs of rope would drop to zero. C. The fixed cost of the employee's wages would stay the same. D. None of these is true.
Throughout the twentieth century, and especially since the mid-1960s:
A. the labor force participation rates of women increased dramatically. B. the labor force participation rates of women have decreased dramatically. C. the labor force participation rates of women slowly increased. D. the labor force participation rates of women fluctuated wildly.
To measure the amount of human capital available in a country, it would be best to determine _____.
(A) The literacy rate of that country. (B) The trading partners of that country. (C) If the nation is rich in natural resources. (D) The comparative advantage of the most profitable exported goods.