Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 24 units of food per year or 12 units of clothing. Which of the following is true?
a. Alland has both a comparative and absolute advantage in producing food.
b. Alland has comparative advantage, but not an absolute advantage, in producing food.
c. Georgeland has both a comparative and absolute disadvantage in producing clothing.
d. Georgeland has an absolute disadvantage, but not a comparative disadvantage, in producing clothing.
d. Georgeland has an absolute disadvantage, but not a comparative disadvantage, in producing clothing.
Georgeland has an absolute disadvantage, but not a comparative disadvantage, in producing clothing.
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What does the term "conditionality" mean in respect to the policies of the International Monetary Fund (IMF)?
A) The IMF will grant loans to any country that seeks them. B) The IMF will cut off loans to a country unless it meets certain specified policy goals regarding budget deficits, inflation, and other macroeconomic concerns. C) The IMF will work with a country only if country destroys its own fiat money and instead adopts the euro. D) The IMF will assist any foreign country that supports the military policies of the U.S. and Great Britain.
In the table above, the market is in equilibrium. Then a minimum wage is set at $11 per hour. The number of unemployed workers will be
A) 0. B) 2 million. C) 4 million. D) 6 million.