100%(4)4 out of 4 people found this document helpful
This preview shows page 7 - 10 out of 15 pages.
Question 143 / 3 ptsUsing comparative advantage, which country should import bed linens?South KoreaBoth countries have a comparative advantage in computer chips, so both should import bed linensBoth countries have a comparative advantage in bed linens, so both should import bed linensUnited StatesSOUTH KOREA SHOULD IMPORT BED LINENS SINCE THEY HAVE A COMPARATIVE ADVANTAGE IN PRODUCING COMPUTER CHIPS SINCE THEY HAVE LOWER OPPORTUNITY COSTS IN PRODUCING COMPUTER CHIPS AND THUS SHOULD SPECIALIZE IN PRODUCING COMPUTER CHIPS. THE US SHOULD IMPORT COMPUTER CHIPS SINCE THEY HAVE LOWER OPPORTUNITY COSTS IN PRODUCING BED LINENS RELATIVE TO SK AND THUS, HAS A COMPARATIVE IN PRODUCING BED LINENS AND SHOULD SPECIALIZE IN PRODUCING BED LINENS
Question 153 / 3 ptsMarginal analysis involves undertaking an activityuntil its marginal benefits equal marginal costsQuestion 163 / 3 ptsWhich of the following statements is true about scarcity?Question 173 / 3 ptsEconomists assume that individualsprefer to live in a society that values fairness above all else
Question 183 / 3 ptsWhich of the following is a normative economic statement?The state of Texas is considering increasing funds for light-rail development to promote the use of public transportationRising global demand for coal has led to increases in the price of coalPharmaceutical manufacturers should not be allowed to patent their productsso prescription drugs would be more affordableWith rising mortgage rates and rising unemployment rates, the number of unsold homes has increasedQuestion 193 / 3 ptsWhich of the following is a positive economic statement?