Refer to Table 9-7
a. Which country has an absolute advantage in the production of handbags and jackets?
b. Which country has a comparative advantage in the production of handbags?
c. Which country has a comparative advantage in the production of jackets?
a. Thailand has an absolute advantage in the production of both products.
b. Cambodia has a comparative advantage in the production of handbags.
c. Thailand has a comparative advantage in the production of jackets.
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Which of the following statements is true?
A) The average product of labor is at its maximum when the average product of labor equals the marginal product of labor. B) The average product of labor tells us how much output changes as the quantity of workers hired changes. C) The average product of labor is at its minimum when the average product of labor equals the marginal product of labor. D) Whenever the marginal product of labor is greater than the average product of labor the average product of labor must be decreasing.
Explain whether each of the following variables is a lagging, leading, or coincident indicator: In each case, is the economy likely in a recession, heading for a recession, in an expansion, or heading for an expansion?
a. Industrial production is falling. b. The number of building permits issued for new private housing units begins to decline. c. The number and amount of commercial and industrial loans start to rise. d. The average prime interest rate charged by banks begins to fall. e. The M2 money supply begins to rise.