Author Question: Which of the following statements is true about the U.S. economy? A) Each year, many new jobs are ... (Read 79 times)

Tazate · **on:** Jun 29, 2018

Which of the following statements is true about the U.S. economy?

A) Each year, many new jobs are created, but few existing jobs are destroyed, and the unemployed find jobs quickly.
B) Each year few jobs are created, and therefore it takes the unemployed a long time to find a new job.
C) Each year, few new jobs are created, but few existing jobs are destroyed, keeping unemployment low.
D) Each year, many new jobs are created and many existing jobs are destroyed.

Question 2

Refer to Table 7-5.

a. Which person has an absolute advantage in the production of pens? Pencils?
b. Which person has a comparative advantage in the production of pens?
c. Which person has a comparative advantage in the production of pencils?

xiazhe · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

a. Farah has an absolute advantage in the production of pens and Tran has an absolute advantage in the production of pencils.
b. Farah has a comparative advantage in the production of pens.
c. Tran has a comparative advantage in the production of pencils.