Refer to Figure 18.1. The United States has a comparative advantage in the production of
A) bicycles. B) hang gliders.
C) both bicycles and hang gliders. D) neither bicycles nor hang gliders.
B
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Refer to Table 2-5. If the two countries specialize and trade, who should export lumber?
A) They should both be exporting lumber. B) Finland C) There is no basis for trade between the two countries. D) Estonia
Which of the following is an advantage of clustering?
a. New entrants can charge higher prices for products as compared to existing firms b. New entrants can have lower cost of gathering regional information about trends in the market. c. New entrants can benefit from favorable terms of trade. d. New entrants can engage in non-price competition with other firms in the industry. e. New entrants can charge low prices for their products.
As output is expanded, if marginal cost (MC) is less than average total cost (ATC),
a. ATC must be at its minimum. b. ATC must be at its maximum. c. ATC must be decreasing. d. the firm must be earning economic profit.
Which of the following is a major pitfall to avoid when purchasing a home?
A) making a large down payment B) use of a fixed rate mortgage to cover 80 percent of the purchase price C) making a small down payment, for example 5 percent or less D) economical purchase of a home that has gone through the foreclosure process