Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible?
a. Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks.
b. Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks.
c. Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats.
d. Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.
d
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The policy that aims to regulate and prevent anti-competitive pricing in the United States is referred to as:
A) antitrust policy. B) anticompetition policy. C) monopoly regulation policy. D) consumer protection policy.
If the cost of capital decreases the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate outward around the point where only labor is employed in production. D) shift inward in parallel fashion.
Government rules and regulations can
A) never enhance trade B) add information to an efficient market C) enhance trade D) all of these choices
Which of the following statements is correct regarding the imposition of a tax on gasoline? a. The incidence of the tax always falls on the buyer
b. The incidence of the tax depends upon the price elasticities of demand and supply. c. The incidence of the tax always falls on the sellers. d. The oil company will ultimately pay.