Refer to the table above. Identify the correct statement
A) Country X has an absolute advantage in the production of both the goods.
B) Country Y has a comparative advantage in the production of both goods.
C) Country X has an absolute advantage only in the production of wheat.
D) Country Y has an absolute advantage in the production of both goods.
D
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Relative to the prices that would be observed in an uncontrolled market, prices charged in a black market are generally
A. lower, since sellers have trouble locating buyers. B. lower, since buyers have trouble locating sellers. C. higher, since black market sellers compensate for the risk of being caught. D. higher, since most buyers enjoy goods more if they are illegal.
The above figure shows a labor market. Before the minimum wage of $8 an hour is imposed, employment equals ________ workers; after the minimum wage of $8 an hour is imposed, employment equals ________ workers
A) 80,000; 40,000 B) 40,000; 80,000 C) 60,000; 40,000 D) 60,000; 80,000 E) 80,000; 60,000
Suppose that Alan, Annie, Amanda, Alicia, and Anthony begin with the same MPC. According to Keynes's absolute income hypothesis, who ends up with the highest MPC?
a. Alicia, an attorney who earns $200,000 per year as a corporate tax specialist b. Annie, a college student living on $5,000 of student loans c. Alan, a new college graduate earning $24,000 in his first job d. Amanda, a fifty-year-old CEO earning $133,000 e. Anthony, a twenty-two-year-old rap star earning $3 million
Refer to the information provided in Table 24.8 below to answer the question(s) that follow.Table 24.8All Figures in Billions of DollarsOutput (Income)Net TaxesConsumption Spending (C = 100 + 0.9Yd)SavingsPlannedInvestment PurchasesGovernment Spending2,6001002,3501501502002,8001002,5301701502003,0001002,7101901502003,2001002,8902101502003,4001003,0702301502003,6001003,2502501502003,8001003,430270150200Refer to Table 24.8. If taxes are reduced by $50 billion and government spending is reduced by $50 billion, the new equilibrium level of income
A. is $3,550 billion. B. is $3,350 billion. C. is $1,600 billion. D. cannot be determined from this information.