Refer to Figure 2-8. The linear production possibilities frontier in the figure indicates that
A) Vidalia has a comparative disadvantage in the production of roses.
B) it is progressively more expensive to produce orchids.
C) Vidalia has a comparative advantage in the production of orchids.
D) the tradeoff between roses and orchids is constant.
D
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Getting a college degree is an example of investing in
A. physical capital. B. research and development. C. technology. D. human capital.
Which one of the following statements is not true? a. There is an opportunity cost associated with setting a money supply target. b. There is an opportunity cost associated with setting an interest rate target. c. When the Fed targets the money supply, the interest rate moves in an inappropriate direction.` d. The Fed targeted the money supply in the 1980s in order to bring inflation under
control. e. The Fed targeted interest rates in the late 1980s and 1990s in order to stimulate investment and aggregate demand.
When economists make
a. positive statements, they are speaking not as policy advisers but as scientists. b. positive statements, they are speaking not as scientists but as forecasters. c. normative statements, they are speaking not as policy advisers but as scientists. d. normative statements, they are speaking not as policy advisers but as model-builders.
Market failure occurs when:
A. markets have perfect information. B. markets do not produce the most efficient outcome. C. companies merge to increase efficiency. D. companies are too efficient.