Suppose an American worker can make 100 chairs or catch 900 fish per day. On the other hand, a Chilean worker, can make 40 chairs or catch 400 fish per day. The United States has an absolute advantage in the production of both fish and chairs. This means that the United States:
A. should take advantage of Chile by trading with them.
B. should produce only chairs and trade with Chile to get fish.
C. should produce only fish and trade with Chile to get chairs.
D. can produce more fish and chairs than Chile given the same amount of workers.
Answer: D
Economics
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If the production technology in a Robinson Crusoe economy has increasing returns to scale, there is no production/consumption plan that is efficient.
Answer the following statement true (T) or false (F)
Economics
Which of the following is generally not a result of increases in productivity per person?
A. increases in per capita income. B. increases in GDP per capita. C. increase in unemployment. D. economic growth.
Economics