In Table 17.4, the United States has 
A. an absolute and comparative advantage in lumber.
B. an absolute and comparative advantage in both goods.
C. an absolute advantage but not a comparative advantage in cars.
D. an absolute advantage but not a comparative advantage in lumber.
Answer: D
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A country reports that when real GDP is $13.0 trillion, aggregate planned expenditure is $14.0 trillion. When real GDP equals $13.0 trillion,
A) planned inventory changes by $1.0 trillion. B) planned inventory changes by -$1.0 trillion. C) both planned and unplanned inventory changes are -$1.0 trillion. D) unplanned inventory changes by -$1.0 trillion. E) unplanned inventory changes by $1.0 trillion.
Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. Which of the following statements is true? ProductivityCountry ACountry BGood X1.000.50Good Y0.200.70
A. Country B has an absolute advantage in the production of Good X. B. Country A has an absolute advantage in the production of both Good X and Good Y. C. Country B has an absolute advantage in the production of both Good X and Good Y. D. Country A has an absolute advantage in the production of Good X.