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Question 140 / 3 ptsUsing comparative advantage, which country should export bed linens?Neither country should export bed linensCorrect AnswerUnited StatesBoth countries have a comparative advantage in computer chips, so both should export bed linensBoth countries have a comparative advantage in bed linens, so both should export bed linensYou AnsweredSouth KoreaSouth 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 South Korea and thus, have a comparative advantage in producing bed linens and should specialize in producing bed linens.Question 153 / 3 ptsEconomics promote which of the following as the way to make the bestdecision?
Question 163 / 3 ptsBy definition, economics is the study ofQuestion 173 / 3 ptsWhich of the following best describes an assumption economists make about human behavior?
Question 183 / 3 ptsWhich of the following is a normative economic statement?The current high price of gasoline is the result of strong worldwide demandCorrect!The price of gasoline is too highWhen the price of gasoline rises, the quantity of gasoline purchased fallsWhen the price of gasoline rises, transportation costs riseQuestion 193 / 3 ptsWhich of the following is a positive economic statement?