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When the Japanese car maker Toyota expands one of its car factories in the United States, what is the likely impact of this event on the GDP and GNP of Japan? ( )

A. GDP rises and GNP falls.
B. GNP rises and GDP falls.
C. GDP shows a larger increase than GNP.
D. GNP shows a larger increase than GDP.

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Mark can cook dinner in 30 minutes and wash the laundry in 20 minutes. His roommate takes half as long to do each task. How should the roommates allocate the work? ( )

A. Mark should do more of the cooking based on his comparative advantage.
B. Mark should do more of the washing based on his comparative advantage.
C. Mark should do more of the washing based on his absolute advantage.
D. There are no gains from trade in this situation.

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An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes.Assume that the two countries trade,which of the following trades can make both better ? ( )

A. Brazil imports coffee and trades 2 ounces of soybeans for 1 ounce of coffee.
Brazil imports coffee and trades 1 ounces of soybeans for 1 ounce of coffee.
C. Brazil imports coffee and trades 3 ounces of soybeans for 1 ounce of coffee.
D. Brazil imports coffee and trades 4 ounces of soybeans for 1 ounce of coffee.

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Which of the following reduces the demand of sweatshirts ? ( )

A hurricane in South Carolina damages the cotton crop.
B. The price of leather jackets falls.
C. All colleges require morning exercise in appropriate attire.
D. New knitting machines are invented.

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The price of coffee rose sharply last month, while the quantity sold remained the same. Each of five people suggests an explanation: Tom: Demand increased, but supply was perfectly inelastic. Dick: Demand increased, but it was perfectly inelastic. Harry: Demand increased, but supply decreased at the same time. Larry: Supply decreased, but demand was unit elastic. Mary: Supply decreased, but demand was perfectly inelastic. Who could possibly be right? ( )

A. Tom, Dick, and Harry
B. Tom, Dick, and Mary
C. Tom, Harry, and Mary
Dick, Harry, and Larry
E. Dick, Harry, and Mary

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When the Japanese car maker Toyota expands one of its car factories in the United States, what is the likely impact of this event on the GDP and GNP of Japan? ( )

A. GDP rises and GNP falls. B. GNP rises and GDP falls. C. GDP shows a larger increase than GNP. D. GNP shows a larger increase than GDP.

Mark can cook dinner in 30 minutes and wash the laundry in 20 minutes. His roommate takes half as long to do each task. How should the roommates allocate the work? ( )

Which of the following reduces the demand of sweatshirts ? ( )

A. GDP rises and GNP falls.
B. GNP rises and GDP falls.
C. GDP shows a larger increase than GNP.
D. GNP shows a larger increase than GDP.