Suppose that country X can produce 1,000 pounds of flour per hour, or catch 500 pounds of fish per hour. In contrast, country Y can produce 1,800 pounds of flour per hour, or catch 300 pounds of fish per hour. If both countries specialize in their comparative advantage and trade, by how much combined output of fish and flour per hour be greater than if there were no trade and the countries divide
an hour of time equally between each output?
a. 200 pounds of flour and 200 pounds of fish.
b. 400 pounds of flour and 100 pounds of fish.
c. 50 pounds of flour and 50 pounds of fish.
d. 160 pounds of flour and 200 pounds of fish.
b
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A good is said to be excludable if
a. those who do not pay for it can be prevented from consuming it b. those who do not produce the good can be prevented from consuming it c. it is not traded in a public market d. there is no rivalry in consuming it e. its use can be continued indefinitely
At the time of his retirement, an individual was able of purchase a basket of goods for $100 . If the price index rises by 3 percent every year, he would require _____ to purchase the same basket of goods 5 years later
a. $103.5 b. $120 c. $150 d. $115.9