Assume Japan must forego producing 60 computers for each automobile it produces. Moreover, the United States can produce one automobile if it forgoes producing 80 computers. Which of the following is true?
a. The United States has a lower opportunity cost of producing automobiles.
b. The United States has a comparative advantage in producing automobiles.
c. Japan has a comparative advantage in producing computers.
d. No trade will occur between Japan and the United States.
e. Japan has a lower opportunity cost of producing automobiles.
E
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Suppose a depression results in for thousands of people in a country losing their jobs. Unable to find jobs, many people are unable to afford a proper diet and some have committed suicide. We can say that unemployment results in _____
a. a loss of lifetime earnings b. a loss of human capital c. the deterioration of health d. a loss of social cohesion
A sum of money to be received in the future is worth more than a sum of money today.
Answer the following statement true (T) or false (F)