Statement I: We Import Very Similar Products from Japan and China

question 184

Multiple Choice

Statement I: We import very similar products from Japan and China.
Statement II: Japan and China both import raw materials from the U.S.and,like a colonial power,export manufactured products back to the U.S.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Productive Resource

Any resource used in the creation of goods and services, including land, labor, and capital.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Economic Resource

Assets or inputs used in the production of goods and services, including natural resources, human resources, capital, and entrepreneurship.

Aggregate Economic Rent

The total earnings that factors of production receive over and above their opportunity cost, representing the extra income derived from resource ownership.