Author Question: If the government required car makers to install more costly and effective emission control devices ... (Read 35 times)

jilianpiloj

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If the government required car makers to install more costly and effective emission control devices on cars, it will lead to:
 a. a higher price of cars and a larger quantity of cars sold.
  b. a higher price of cars and a smaller quantity of cars sold.
  c. a lower price of cars and a larger quantity of cars sold.
  d. a lower price of cars and a smaller quantity of cars sold.

Question 2

Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following is true?
 a. Adam has an absolute advantage in oranges and a comparative advantage in apples.
  b. Karl has an absolute advantage in oranges and a comparative advantage in oranges.
  c. Karl has an absolute advantage in both apples and oranges.
 d. Karl has an absolute advantage and a comparative advantage in apples.



SAUXC

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Answer to Question 1

b

Answer to Question 2

b



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