Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. If Country B transfers one labor hour from the production of Good X to the production of Good Y, total world production of Good Y will ________ by ________ unit(s). ProductivityCountry ACountry BGood X1.000.50Good Y0.200.70 

A. increase; 0.7
B. increase; 0.5
C. decrease; 1.5
D. decrease; one


Answer: A

Economics

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If the complicated technology costs $10million to develop while the simple technology costs $2million to develop, which technology is more profitable to develop?

a. The simple voice-activated software b. The complicated thought-activated software c. Neither of the software d. Need more information

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When costs that vary with the level of output are divided by the output, you have calculated:

A. total changing cost. B. total fixed cost. C. average fixed cost. D. average variable cost.

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In comparing the traditional way of structuring mortgages and the newer structure of providing mortgages that securitized them and insured those securities with credit-default swaps, it is clear that the ________ structure increased homeownership rates and that the ________ structure was safer to the health of the overall economy.

A. traditional; traditional B. newer; traditional C. newer; newer D. traditional; newer

Economics