Refer to Mexico and Japan. Which country is the more efficient food producer, and which country is the more efficient cloth producer?
a. Mexico is the more efficient food producer, and Japan is the more efficient cloth producer.
b. Japan is the more efficient food producer, and Mexico is the more efficient cloth producer.
c. Mexico is the more efficient producer of both goods.
d. Japan is the more efficient producer of both goods.
a. Mexico is the more efficient food producer, and Japan is the more efficient cloth producer.
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If Japanese workers are more productive than French workers then trade between Japan and France
A) cannot take place because Japanese goods and services will be less expensive than French goods and services. B) can take place only if France has an absolute advantage in producing a good or service Japanese buyers want. C) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want. D) cannot take place until French workers become more productive.
Which of the following is NOT a reason for differences in per capita income in neoclassical growth theory?
A) All countries have the same production function. B) Countries have different savings rates. C) The slope of the steady-state investment line is different for different countries. D) All of the above.
What is true of equilibrium in the game in Scenario 13.14?
A) In equilibrium, both firms choose Q = 50. B) In equilibrium, both firms choose Q = 100. C) There are two equilibria, at Q = 50 and at Q = 100. D) The only equilibrium is in mixed strategies. E) The two equilibria are those associated with the (40,30 ) outcome and the (30,40 ) outcome.
Some producers are involved in producing consumption goods while others focus on the production of investments goods. Together, they generate an output that can be written as
a. C = a + bY b. Y = C + S c. Y = C + Ii d. Ii = SI e. MPC + MPS = 1