Which of the following best describes the comparative advantage of the two countries illustrated in Figure 35.1?
A. Japan has a comparative advantage in motorcycles, the United States in DVD players.
B. Japan has a comparative advantage in both goods.
C. The United States has a comparative advantage in both goods.
D. Japan has a comparative advantage in DVD players, the United States in motorcycles.
Answer: A
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The difficulty in analyzing oligopolistic behavior arises from the
a. degree of government regulation of the market structure. b. interdependent nature of oligopolistic decisions. c. large number of firms in the industry. d. market power of consumers.
When a union raises the wage above the equilibrium level, it
a. reduces both the quantity of labor supplied and the quantity of labor demanded. b. reduces the quantity of labor supplied and raises the quantity of labor demanded. c. raises the quantity of labor supplied and reduces the quantity of labor demanded. d. raises both the quantity of labor supplied and the quantity of labor demanded.