Absolute Advantage to Comparative Advantage Introducing Opportunity Cost
Suppose we want to look at absolute advantage for the following set of information
To ascertain absolute advantage look at the product across the
Section 4 Practice Test
Identify the choice that best completes the statement or answers the question.
Figure 16-1: Consumption and Real GDP
1. Use the Consumption and Real GDP Figure 16-1. The slope of the consumption function is called t
Comparative Advantage Multiple Choice Practice
Table 1. Comparative Advantage. Eastland and Westland produce only
two goods, peaches and oranges, and this figure shows each nations
production possibility curve for the two goods.
When there is price control in the competitive market, suppliers are not allowed to increase
the price of their good and services over the regulated amount, and on this amount they
might not receiv
Minorities Fall Further Behind Whites in Wealth During Economic Recovery
by Tanzina Vega
When looking at median family wealth, the ranking of the four racial or ethnic
groups did not change order between 1989 and
1. How high did the official unemployment rate become in May 2009? Looking at
Table 2, what was the number of unemployed that month?
2. What groups are excluded from the official unemployment rate but are truly
Prison and the Poverty Trap by John Tierney
In our society, we have been taught that, everybody is entitled to life, liberty
and the pursuit of happiness, but there are some individuals who don't have the
One World, Ready or not: The Manic Logic of Global Capitalism by William
Greider, studies the machine of modern capitalism. In the book, Greider describe the
machine as something that is driven by the imperatives
1. Explain the difference between a progressive and a regressive tax, using
the example from the second power point slide (Elvis, Mohamed, etc.)
A progressive tax means that people with higher incomes pay a higher percentage of
1. What is market failure? (note: be sure to discuss in terms of the production
possibilities curve on p. 71) What are the causes of market failure?
Explain/discuss the four sources of market failure. What kind of government
1. What are the macroeconomic and human costs of unemployment?
The economic and social cost of unemployment includes personal costs, costs to
government and costs to society in general. Unemployment can cause incom
EC 201 SEMESTER 1 2010 - TUTORIAL 7 TOPIC 8 THE DEMAND FOR MONEY PROBLEM SETS FROM TEXTBOOK: Rudiger Dornbusch, Philip Bodman, Mark Crosby, Stanley Fischer, and Richard Startz, Macroeconomics, Edition 2, McGraw-Hill Australia Publishers, 2006. (pp 405-406