Which of the following economic goals focuses on ensuring citizens' well-being even in a crisis?
answer
Security
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Gabrielle does not want to work a nine-to-five job. Still, she has to work to support herself. She accepts a job as a restaurant server in the evenings and uses her days to pursue artistic projects. How do Gabrielle's economic decisions best relate to broad economic goals?
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She exercises freedom of economic choice.
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Marx would most likely support a plan for
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government ownership of most production
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Which of the following describes a developed/advanced nation?
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A high Human Development Index and a high per capita income
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Which economic advantages does the United States have compared to other nations?
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Expansive territory, fertile farmland
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The governments of the United States, Mexico, and Canada created the North American Free Trade Agreement in order to
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remove barriers to trading products between the three countries
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Look at the map showing the European Union (EU) and its free-trade agreement (FTA) countries. Which is true about most current EU free-trade agreements?
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The European Union's free-trade agreements include agreements with both developed and developing nations.
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Two countries produce milk and dairy products efficiently. Neither has an absolute advantage. However, Country A exports milk to Country B, and Country A imports cotton from Country B. Which of the following is inferred?
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The opportunity cost of producing milk is lower for Country A.
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A low inflation rate is preferred because
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low inflation indicates steady growth
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Globalization increases the interdependency of the world's countries. Inflation in one country would most likely
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relate to inflation in other countries
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Why does a large industrial sector not always indicate that a nation is fully developed?
answer
The standard of living may not have risen with industrial growth
question
Worker hours to produce one barrel of crude oil
United States (Developed): 4
Country A (Developing): 6
Country B (Developed): 7
Worker hours to produce one ton of coal
United States (Developed): 5
Country A (Developing): 5
Country B (Developed): 3
Using the chart, identify an example of absolute advantage for the United States over either Country A or Country B. Be sure to identify the product and the country. Explain how the availability and use of a natural resource may impact advantage.
answer
An absolute advantage for the United States over Country B would be in crude oil. This may be because Country B may not have as much territory as the United States to drill for oil in or there weren't enough fossils to produce oil in the area Country B is located.
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Explain the difference between absolute advantage and comparative advantage. Provide an example to illustrate your explanation.
answer
The difference between absolute advantage and comparative advantage is that absolute advantage is when a country requires less physical resources than another country to produce a particular good or service while comparative advantage is when a country has a lower opportunity cost than another country to produce a particular good or service. For example, Florida has an absolute advantage over Canada in production of Orange Juice because we have the correct climate for oranges to thrive in, so we have a lot of them. A comparative advantage would be Country 1 can produce 100 units of a product using 100 workers, while Country 2 can produce the same amount of units but using 80 workers. So, Country 2, has comparative advantage.
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