Refer to the diagram where curves (a) through (e) are for five different countries. The Gini ratio is lowest in country:

If you can produce more of something than others with the same resources, you have

A) a free-market economy. B) an absolute advantage. C) an efficient production system. D) a comparative advantage.

Exhibit 4-2 Supply and demand curves The market shown in Exhibit 4-2 is initially in equilibrium at E3. Changes in market conditions result in a new equilibrium at E4. This change is stated as a(n):

A. increase in demand and an increase in supply. B. decrease in demand and a decrease in quantity supplied. C. increase in supply and an increase in quantity demanded. D. decrease in supply and a decrease in quantity demanded.