Suppose there are only two goods: food and clothing. What does it mean for the U.S. to have a comparative advantage in food production?
a. The U.S. needs fewer resources to grow a given amount of food than do other nations.
b. The U.S. sacrifices less clothing production to grow a given amount of food than do other nations.
c. In the U.S., food production needs fewer resources than does a comparable amount of clothing production.
d. In the U.S., food production costs less than does clothing production.
b. The U.S. sacrifices less clothing production to grow a given amount of food than do other nations.
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A bank in Checkland lends a sum of $100 billion to a business firm in Zoroland. Checkland makes a donation of $5 million to a charity in Zoroland. A retail giant in Zoroland opens a new facility in Checkland that is worth $100 billion
Total foreign direct investments in Checkland equal: A) $100 billion. B) $205 billion. C) $200 billion. D) $105 billion.
In the above figure, at what minimum wage is the unemployment level equal to 200 million hours?
A) $2 per hour B) $4 per hour C) $6 per hour D) $8 per hour
The primary reason why a monopoly can make a long-run economic profit is the existence of
A) barriers to entry. B) inelastic demand. C) price discrimination. D) many buyers.
When the United States was under the gold standard,
a. the amount of currency depended on the size of the monetary gold stock. b. the central bank would buy or sell gold from anybody at the established price. c. the value of the dollar floated against gold. d. the amount of currency depended on the size of the monetary gold stock AND the central bank would buy or sell gold from anybody at the established price.