Refer to the graphs and information below. It can be deduced that:
Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs below.
A. Greece has a comparative advantage in chemicals
B. Greece has the absolute advantage in both products
C. Italy has a comparative advantage in chemicals
D. It is more costly in terms of resources to produce steel in Italy
A. Greece has a comparative advantage in chemicals
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Economic theory provides insights into the range of possibilities for cost relationships. Studies such as those by Blinder et al. provide insights into where, within that range, many firms operate
Thus, there is no real conflict between theory and reality, as some people might try to claim. Indicate whether the statement is true or false
Why are the public sector and private sectors “imperfect institutions”?
Please provide the best answer for the statement.
Total reserves are
A. deposits held by Federal Reserve district banks for depository institutions, plus depository institutions' vault cash. B. any item that legally functions as money. C. reserves that a depository institution must hold in the form of vault cash. D. reserves that depository institutions are allowed to claim as reserves.
Creative destruction includes all of the following except
(a) The rise of the automobile industry at the expense of the carriage industry (b) The rise of the computer industry at the expense of the typewriter industry (c) The destruction of all capital during economic busts (d) There is no except; all of the above are examples of creative destruction