Refer to the figure above. Which of the following statements is true?
A) Ryan has a comparative advantage in the production of Good 1, whereas Tom has a comparative advantage in the production of Good 2.
B) Ryan has a comparative advantage in the production of Good 2, whereas Tom has a comparative advantage in the production of Good 1.
C) Ryan has a comparative advantage in the production of both the goods.
D) Tom has a comparative advantage in the production of both the goods.
A
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According to classical growth theory, if labor productivity increases,
A) people save more, which increases the capital per hour even more, and so economic growth continues indefinitely. B) the population grows and eventually real GDP returns to the subsistence level. C) the population grows but more slowly than real GDP so that people's incomes are permanently higher. D) the pursuit of profit causes further increases in capital per hour and technology and economic growth continues indefinitely. E) the growth rate of real GDP per person permanently increases.
Under the Clayton Act,
a. the same person cannot sit on the boards of directors of competing corporations. b. mergers are illegal. c. monopoly is illegal. d. the Sherman Antitrust Act was repealed.