Suppose that Canada can produce 15 timber or 3 film and Mexico can produce 9 timber or 3 film. Suppose that opportunity costs are constant. Which of the following is FALSE?
A) Canada has an absolute advantage in timber production.
B) Mexico has a comparative advantage in film production.
C) The opportunity costs for producing timber are lower in Canada than in Mexico.
D) Canada and Mexico would find trade mutually advantageous at a ratio of one unit of film to six units of timber.
D
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Average labor productivity is determined by:
A. the number employed, unemployed, and the labor force participation rate. B. consumption, investment, government spending, and net exports. C. the real interest rate, the nominal interest rate, and the rate of inflation. D. the quantity and quality of human capital, physical capital, technology, natural resources, entrepreneurship, and the legal and political environment.
Advertising: a. cannot influence market demand
b. shifts the average total cost curve upward. c. is used only by perfectly competitive firms. d. makes demand more elastic by creating customer loyalty.
Which of the following countries would economists say definitively is achieving modern economic growth?
A. Zimbabwe experiences a 5.6 percent increase in nominal GDP. B. South Africa experiences a 4.2 percent increase in real GDP. C. Ghana experiences a 3.6 percent increase in nominal GDP per person. D. Nigeria experiences a 2.7 percent increase in real GDP per person.
Rent control laws are imposed when city officials believe landlords have been exploiting tenants. Which of the following criteria are they using to guide their actions?
A. growth B. equity C. stability D. efficiency