Which of the following is not correct?
a. The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good.
b. The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X.
c. The producer who has the smaller opportunity cost of producing a good is said to have a comparative advantage in producing that good.
d. The gains from specialization and trade are based not on comparative advantage but on absolute advantage.
d
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"If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of living than people in Country B." Is this statement true or false? Explain your answer
What will be an ideal response?
When economic profits are zero, accounting profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.
If the price elasticity of demand for a good is 0.2, then a 3 percent decrease in price results in a
a. 0.6 percent increase in the quantity demanded. b. 1.5 percent increase in the quantity demanded. c. 2 percent increase in the quantity demanded. d. 6 percent increase in the quantity demanded.
Which of the following would shift the long-run aggregate supply curve to the right?
A. The elimination of job training programs. B. The elimination of government-subsidized college loans. C. A decrease in the marginal propensity to save. D. Political and economic stability.