Question

can you answer these

The higher a country’s gross domestic product (GDP), the more likely it is that the country

is wealthy.
is developed.
has high inflation.
has little debt.

Which situation is an example of comparative advantage in an international market?


Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export.
Factories in Country A and Country B produce the same number of tablet computers. Country A’s factories could be used instead to build more laptops than the factories in Country B.
Country A invests in a new technology while Country B chooses to invest in education.
Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.

When it spends money on education, a government is trying to

find a way to meet a social need.
encourage immediate economic growth.
meet a social need and improve the economy.
find a way to spend budget surpluses.

A mixed-market economy is one in which

the government has complete control.
there are strict limits on economic choice.
the government makes no regulations.
there is competition and free enterprise.In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of

following a federal regulation.
lowering prices for customers.
reducing the risk for consumers.
creating a new or better product.

Answer 1

Here are the answers with brief explanations:

1) is wealthy.
- Higher GDP generally indicates greater overall wealth and economic output.

2) Factories in Country A and Country B produce the same number of tablet computers. Country A’s factories could be used instead to build more laptops than the factories in Country B.
- This refers to differences in opportunity cost (the basis of comparative advantage).

3) meet a social need and improve the economy.
- Education is both a public/social good and an investment that raises human capital and long-term growth.

4) there is competition and free enterprise.
- A mixed market blends private enterprise with some government regulation/intervention.

5) reducing the risk for consumers.
- A warranty lowers the consumer’s financial risk from future product failures.