If the U.S. enjoys an absolute advantage in agriculture compared to every other country in the world, then
A. agricultural production will take place only in the U.S.
B. the U.S. necessarily has a comparative advantage in agriculture.
C. the U.S. may or may not have a comparative advantage in agriculture.
D. the U.S. necessarily does not have a comparative advantage in agriculture.
C. the U.S. may or may not have a comparative advantage in agriculture.
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Which of the following situations could generate a shortage?
A) Demand for a good increases, resulting in a new higher market clearing price. B) Demand for a good decreases, resulting in a new lower market clearing price. C) Demand for a good increases, but the price is not permitted to rise. D) Demand for a good decreases, but the price is not permitted to fall.
Which of the following services have experienced declines in relative prices due to productivity increases?
A. Medical services B. Restaurant meals C. Theatrical performances D. Internet access services