Assume that the United States uses 20 worker-hours to produce 1 computer and 5 worker-hours to produce 1 unit of food; assume also that Japan uses 10 worker-hours to produce 1 computer and 30 worker-hours to produce 1 unit of food. Which of the following statements is true?
a. Japan has the comparative advantage in food production.
b. The United States has the comparative advantage in food production.
c. The United States has the absolute advantage in food production.
d. The United States has a lower opportunity cost for making computers.
e. Japan has a lower opportunity cost for making food.
b
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Refer to Figure 4-8. What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?
A) $40,000 B) $100,000 C) $125,000 D) $140,000
Which of the following institutions has the responsibility for distributing currency and coins to the U.S. banking system?
A) the Office of the Comptroller of the Currency B) the Federal Reserve System C) the U.S. Bureau of Engraving and Printing D) the U.S. Treasury Department