Canada and the U.S. both produce wheat and computer software. Canada is said to have comparative advantage in producing wheat if

Canada and the U.S. both produce wheat and computer software. Canada is said to have comparative advantage in producing wheat if
the opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.S.

Please use the data provided below to answer this and the following question:

Which of the statements is true?
Australia has an absolute advantage in the production of both food and electronics 
[Or]
Australia has an absolute advantage in the production of electronics, while Korea has comparative advantage in the production of electronics 

Korea should
specialize in electronics production, export electronics, and import food 

In a competitive market, the price of the product
none of the above 

A market is a
group of demanders and suppliers of a particular good or service 

Each of the following are determinants of demand except
technology 

If John receives an increase in his pay, we would expect
his demand for normal goods to increase 

An example of substitute goods would be
butter and margarine 

Suppose that scientists find evidence that proves chocolate pudding lowers cholesterol. We would expect to see
an increase in the demand for chocolate pudding 

John rents 5 movies per month when the price is $3.00 each and 7 movies per month when the price is $2.50. He demonstrates the
law of demand 

Which of the following statements is true about the impact of an increase in the price of lettuce?
the equilibrium price and quantity of salad dressing will fall

The law of supply clearly states that
an increase in price of the product leads to an increase in quantity supplied, other things equal 

Suppose you make gold jewelry. An increase in the price of gold will cause
supply of gold jewelry to decrease

Which of the following events would definitely result in a higher price in the market for oranges?
demand for oranges increases and supply of oranges decreases 

Suppose roses are currently selling for $40.00 per dozen. The equilibrium price of roses is $30.00 per dozen. We would expect a
surplus to exist and the market price of roses to decrease 

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?
price will fall and the effect on quantity is ambiguous 

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises and the price of steel rises?
quantity will fall and the effect on price is ambiguous

The concept of elasticity is used to
analyze supply and demand with greater precision 

Price elasticity of demand measures
the responsiveness in quantity demanded to a change in price 

In general, a flatter demand curve is more likely to be
price elastic 

If the price elasticity of demand for a good is 4.0, then a 10% increase in price will result in a
40% decreased in quantity demanded 

The midpoint method is used to compute elasticity because it
gives the same answer regardless of the direction of change 

When the local used bookstore prices economics books at $15.00 each, they generally sell 70 per month. If they lower the price to $7.00 each they sell 90. Given this, the price elasticity of demand for economics books, calculated using the midpoint method is
0.34 

When demand is inelastic, a decrease in price will cause
a decrease in total revenue 

In which of the following situations will total revenue increase?
all of the above 

Price controls are
usually enacted when policymakers believe that the market price of a good or service is unfair to buyers or sellers 

In the 1970s, long lines at gas stations in the United States were primarily a result of the fact that
the U.S. government imposed a price ceiling on gasoline