Grapes are considered intermediate goods:

Refer to Table 1. If England and Spain each spends all its time producing the good in which it has a comparative advantage and the countries agree to trade 2 units of bread for 6 units of cheese, then England will consume:

A tax on gasoline encourages people to drive smaller, more fuel-efficient cars. Which principle of economics does this illustrate?

The law of demand states that, other things equal, when the price of a good:

Consider Frank’s decision to go to college. If he goes to college, he will spend $21,000 on tuition and $1,800 on books. If he does not go to college, he will earn $16,000 working in a store. Including opportunity cost, Frank’s cost of going to college is:

The imposition of an import quota shifts

If a country has a trade deficit then

Refer to Figure 1. This economy cannot produce at which point(s)?

In the United States, a three-pound can of coffee costs about $5. If the exchange rate is 0.8 euros per dollar and a three-pound can of coffee in Belgium costs 7 euros. What is the real exchange rate?

Which of the following is not correct?