If the opportunity costs of production for two goods is different between two countries, then
A) only one country can be made better off by trade.
B) trade will only benefit both countries if one can lower its opportunity costs.
C) trade cannot benefit either country.
D) mutually beneficial trade is possible.
D
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A supply curve that is parallel to the quantity axis is
A) perfectly elastic. B) perfectly inelastic. C) relatively inelastic. D) unitary elastic.
When we compare PAE and actual output (Y) the macroeconomic variable we generally use to directly assess their equivalence is:
A. unemployment. B. interest rates. C. inventories. D. capital expenditure.
Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4 . Which of the following combinations of beers and bratwursts represents a point that would lie to the interior of the consumer's budget constraint?
a. 160 beers and 200 bratwursts b. 40 beers and 50 bratwursts c. 80 beers and 100 bratwursts d. 160 beers and 0 bratwursts
A decrease in long-run average costs resulting from increases in output is
A) attributed to economies of scale. B) attributed to diseconomies to scale. C) attributed to constant returns to scale. D) attributed to the law of diminishing marginal product.