If Nation A requires more resources to produce each bale of cloth than Nation B does, then we say that:
A. Nation A has the absolute advantage over Nation B in producing cloth
B. Nation B has the absolute advantage over Nation A in producing cloth
C. Nation A has the comparative advantage over Nation B in producing cloth
D. Nation B has the comparative advantage over Nation A in producing cloth
B. Nation B has the absolute advantage over Nation A in producing cloth
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Suppose that the opportunity cost of a student's time is greater when he studies than when he works. What mistake is he making and why?
What will be an ideal response?
Suppose the U.S. price level rises 25 percent at a time when Japan experiences stable prices. As a result, the U.S. demand for Japanese goods will __________, and the Japanese demand for U.S. goods will __________; in turn, this will increase the demand for Japanese yen and decrease the supply of Japanese yen; in turn, the dollar will depreciate and the yen will appreciate
A) rise; fall B) fall; rise C) rise; rise, too D) fall; fall, too