Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.)
A) The United States has a comparative advantage in bicycle production.
B) The United States has a comparative advantage in producing both goods.
C) Mexico has a comparative advantage in producing bicycles.
D) Mexico has a comparative advantage in producing both goods.
C
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Which of the following is true of economic expansions?
A) Economic expansions are defined as the period between recessions. B) Consumption increases but investment falls during periods of economic expansion. C) Output grows during periods of economic expansion, but the unemployment rate is also high. D) Governments can correctly predict the length of periods of economic expansion.
In the above figure, which part corresponds to a fall in the money wage rate?
A) Figure A B) Figure B C) Figure C D) Figure D