For country Gamma the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?
A) Beta
B) Gamma
C) Both have the comparative advantage in the production of steel.
D) Neither country has the comparative advantage in the production of steel.
E) More information is needed to determine which of the two nations has the comparative advantage.
B
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Equilibrium GDP on the demand side occurs when total spending
a. equals total production, and inventories are zero. b. equals total production, and firms are unable to adjust inventories. c. exceeds total production, and inventories are rising. d. equals total production, and inventories remain at desired levels. e. is less than total production, and inventories are falling.
An empirical study compared the price of eyeglasses in states that restricted advertising by optometrists with those that did not.The study revealed:
a. That the average price of eyeglasses in states where advertising was restricted was higher than the average price in states were advertising was not restricted b. That the average price of eyeglasses in states where advertising was not restricted was higher than the average price in states where advertising was restricted c. That the average price of eyeglasses did not differ between states where advertising was restricted and those in which advertising was not restricted d. That the greater the level of advertising, the higher the average price of eyeglasses