If a country possesses the absolute advantage in the production of one good:
A. it can produce more of that good given the same resources.
B. then it must also possess the absolute advantage in the production of the other good.
C. then it must also possess the comparative advantage in the production of the other good.
D. then it must also possess the comparative advantage in the production of both goods.
Answer: A
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A government budget surplus occurs during a budget year when
A) tax revenues = government spending. B) tax revenues + government spending = personal income. C) tax revenues > government spending. D) tax revenues < government spending.
Belgium's real GDP per person is $33,000 and Austria's is $34,700. The population growth rate in Belgium is 0.13 percent and the growth rate of real GDP is 3.0 percent
The population growth rate in Austria is 0.08 percent and the growth rate of real GDP is 3.3 percent. If these growth rates continue, how many years will it take for Belgium's real GDP per person to equal Austria's real GDP per person? A) Belgium's standard of living will never equal Austria's. B) just over 23 years C) just over 24 years D) just over 21 years E) over 230 years