Refer to Figure 2-11. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?
A) They have the same advantage. B) Pakistan
C) Indonesia D) cannot be determined
C
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Refer to the scenario above. Which country is likely to have the highest rate of poverty?
A) Techland B) Ritzland C) Neoland D) Eduland
For the U.S. federal government, discretionary expenditures refer to
A) spending on entitlement programs. B) spending on imports and exports. C) spending on interest on federal debt. D) spending that must be authorized by Congress each year.
________ means people are more unhappy when they suffer losses than they are happy when they achieve gains
A) Loss fundamentals B) Loss aversion C) Loss leader D) Loss cycle
The key assumption that accompanies the use of numbers for measuring utility is that:
A. people make consumption decisions. B. utility can be perfectly measured. C. utility cannot be measured by an outside party. D. individuals choose based on their preferences.