Whenever the opportunity costs of goods are significantly different in different countries, there are gains from specialization and trade

a. True
b. False


A

Economics

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The term used to emphasize that making choices in the face of scarcity involves a cost is

A) substitution cost. B) opportunity cost. C) utility cost. D) accounting cost.

Economics

Refer to the graph shown. The cost of 5 units of labor and 6 2/3 units of machines is the same as the cost of:

A. 5 units of labor and 10 units of machines. B. 15 units of labor and 2 units of machines. C. 10 units of labor and 10 units of machines. D. 7.5 units of labor and 5 units of machines.

Economics

The aggregate supply curve is

A. generally flatter as the level of resource use rises. B. never vertical, even at full employment. C. relatively flat at low levels of output. D. relatively steep at low levels of output.

Economics

Increases in productivity cause the:

A. production function to shift upward. B. production function to shift downward. C. depreciation function to shift downward. D. investment curve to shift downward.

Economics