One of the Largest Categories of Exports from the United

question 254

Multiple Choice

One of the largest categories of exports from the United States is now pop culture: movies, music, TV programming, and videos. A direct conclusion from this information is that, compared to other countries, the United States has

• A) lower wages for producers of pop culture.
• B) higher wages for producers of pop culture.
• C) an absolute advantage in producing pop culture.
• D) a comparative advantage in producing pop culture.

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Definitions:

Coupon

Yearly interest rate provided by a bond, shown as a percentage of its face value.

Market Price

The sale or purchase price of a service or asset in the current market.

After-tax Cost

The expense of an action or item after accounting for the impact of taxation.

Coupon

A financial term referring to the annual interest payment received by a bondholder from the bond's issuer until it matures.