Mutually beneficial international trade between two countries depends on
a. each country having an absolute advantage in the production of a different good
b. one country being worse (requiring more resources) than the other in the production of every good
c. at least one country having a zero opportunity cost in the production of at least one good
d. one country being relatively better at producing a good (which makes the other country relatively worse at it)
e. one country being relatively better at producing all goods
D
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Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000. Nevertheless, Billy will need to borrow $240,000 at an interest rate of 7% per year in case he decides to make this investment. Should Billy purchase this house?
A) No, he will lose money. B) Yes, his profits will be zero. C) No, his profits will be positive but close to zero. D) Yes, he will profit from this investment.
The poverty rate is
a. a measure of income inequality across families. b. the percentage of the population whose family income falls below a specified level. c. an absolute level of income set by the federal government for each family size. d. measured by the number of in-kind transfers that a family receives.