When an international financial crisis occurs A) financial ...

[viki]

When an international financial crisis occurs
 
  A) financial lenders protect their investments by pouring money into the ailing country.
  B) there are no serious financial effects that last more than a few months.
  C) financial flows can slow to a trickle, influencing economic growth.
  D) investors sell off bonds and restrict loans as a mechanism to help the country recover.

Question 2

Greatland and Superland both produce 5 million watches in a year. The opportunity cost of producing one watch is 2 shirts in Greatland, and the opportunity cost of producing one watch is 3 shirts in Superland.
 
  Which of the following statements is true?
  A) Superland has a comparative advantage in producing watches.
  B) Superland has an absolute advantage in producing watches.
  C) Greatland has a comparative advantage in producing watches.
  D) Greatland has an absolute advantage in producing watches.
 
  Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples in a year or 500 pounds of oranges. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.

[tsternbergh47]

Answer to Question 1

C

Answer to Question 2

C

[viki]

TYSM

[gcook]

Excellent