Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. What is the opportunity cost of producing coffee in Chile?
a. Half a pound of sugar
b. Two-fifth of a pound of sugar
c. 2 pounds of sugar
d. One-third of a pound of sugar
e. 4 pounds of sugar
b
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Demographers refer to this as the "demographic transition": The reduction in death rates brought about by rising standards of living "causes a temporary population explosion because parents - initially unaware that such a revolutionary change in death rates has taken place - for a while keep having six or more children...to ensure that at least two will survive to adulthood." For which major industrialized country could this statement be used to explain its current population trend?
A. United States B. Japan C. India D. China
According to the law of demand, a demand curve
A. Has a negative slope. B. Has a positive slope. C. Exceeds the economy's ability to produce. D. Is a horizontal or flat line.