Which of the following statements is true for the two countries illustrated in Figure 35.1?

A. Japan has an absolute advantage in motorcycles, the United States in DVD players.
B. Japan has an absolute advantage in motorcycles.
C. The United States has a comparative advantage in motorcycles, Japan in DVD players.
D. The United States has a comparative advantage in DVD players.


Answer: D

Economics

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A. create a stable political system. B. provide national health care system. C. maintain a stable currency. D. ensure basic education for all citizens.

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If actual output exceeds potential output for a prolonged period of time, we would eventually expect factor prices to:

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Which of the following goods is more likely to be excludable?

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Economics