Refer to Table 5.1. Does either Andrea or Hector have an absolute advantage and if so, in what product?
A) Andrea only has an absolute advantage in producing bracelets.
B) Hector only has an absolute advantage in producing bracelets.
C) Andrea has an absolute advantage in producing both products.
D) Hector only has an absolute advantage in producing tiaras.
C
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Intermediation in the financial system is the process of:
A. an arbitrator working with government and private firms to create an efficient financial system. B. bringing together buyers and sellers in a market. C. negotiating terms of repayment when agreements between buyers and sellers are in default. D. government intervention in a financial market.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.According to the graph shown, if this economy were to open to trade, which amount of surplus would be transferred?
A. Area BC would be transferred to the consumer. B. Area BC would be transferred to the producer. C. Area BCD would be transferred to the consumer. D. Area BCD would be transferred to the producer.