"The United States has more oil in Alaska than there is oil in Kuwait. Therefore, the United States should stop importing oil." Evaluate this statement using economic analysis
While the statement is based on absolute advantage, the decision on importing oil depends on comparative advantage. The United States may not have a comparative advantage in oil compared to Kuwait if the United States would have a productive alternative to oil production, such as fishing or tourism.
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Protection is rarely withdrawn from infant industries because such firms are necessary to ensure creation of domestic jobs
a. True b. False Indicate whether the statement is true or false
Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?
A. Per capita GDP. B. Nominal GDP. C. Real GDP. D. GDP deflator.
Price elasticity of supply is always
A) positive because of the law of supply.
B) negative because of the law of supply.
C) positive because of diminishing marginal utility.
D) negative because percentages can only be negative.
Assume an economy produces only footballs and baseballs and the base year is 2005. Quantity producedPrices 2005200620052006Footballs200300$20$25Baseballs500600$10$15Given the data in the table above, what is the value of real GDP in 2006?
A. $12,500 B. $10,000 C. $ 9,000 D. $12, 000