Unless two people who are producing two goods have exactly the same opportunity costs, then one person will have a comparative advantage in one good, and the other person will have a comparative advantage in the other good
a. True
b. False
Indicate whether the statement is true or false
True
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Other things equal, in an open economy, monetary policy to offset an inflationary gap will tend to
a. Lower the exchange value of the dollar and lower net exports. b. Lower the exchange value of the dollar and raise net exports. c. Raise the exchange value of the dollar and lower net exports. d. Raise the exchange value of the dollar and raise net exports.
If Ellie Mae spends her income on possum and biscuits, and the price of possum is three times the price of biscuits, then when Ellie Mae maximizes total utility, she will buy
a. equal quantities of possum and biscuits b. three times as much possum as biscuits c. three times as many biscuits as portions of possum d. biscuits and possum until the marginal utility of possum is three times the marginal utility of biscuits e. biscuits and possum until the marginal utility of biscuits is three times the marginal utility of possum
If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing milk shakes.
Answer the following statement true (T) or false (F)
In the absence of increases in the supply of labor, increases in the capital stock are subject to diminishing returns.
Answer the following statement true (T) or false (F)