Refer to the given data. On the basis of the production possibilities data shown:
Answer the question on the basis of the following production possibilities data for Landia and Scandia:
A. Landia has a comparative advantage in chips while Scandia has a comparative advantage
in fish.
B. Landia has a comparative advantage in fish while Scandia has a comparative advantage in
chips.
C. both Landia and Scandia have a comparative advantage in fish.
D. both Landia and Scandia have a comparative advantage in chips.
A. Landia has a comparative advantage in chips while Scandia has a comparative advantage in fish.
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Along an IS curve as interest rates __________, income must be __________ so that saving, which is a positive function of income, can be lower to equal the smaller level of investment
A) decline; lower B) decline; higher C) increase; lower D) increase; higher
Because the presence of a warranty for a good is a signal that the good is of high quality,
A) consumers are willing and able to pay more for a good that carries a warranty. B) consumers are willing to buy goods if and only if the goods come with warranties. C) producers do not need to charge extra for warranties. D) producers can use warranties to sort out high-risk customers. E) producers must make warranties available on all goods.