Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesChinaComputers83Bicycles26 Refer to the above table. If opportunity costs are constant and the two countries trade
A. the United States should specialize in bicycles and China in computers.
B. the United States should specialize in both bicycles and computers, and China should specialize in neither.
C. the United States should specialize in computers and China in bicycles.
D. there will be no trade because they are so different.
Answer: C
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Relative to GDP, interest on the national debt
a. has grown at a steady rate during the last 40 years b. has remained constant in recent decades c. grew especially rapidly during the 1980s d. declined slightly during the 1980s e. fluctuates as retirement portfolios change their allocation of government securities
15) In the figure above, the opportunity cost of moving from point B to point C A) is the loss in production in the healthcare sector. B) is the increase in production in the education sector. C) is zero. D) is the loss in production in the education sector.
The government regulates monopolies in order to
A. Protect consumers from false advertising. B. Prohibit mergers or acquisitions that would lessen competition. C. Ensure that product quality meets minimum standards, such as testing of new drugs. D. All of the choices are correct.
In the long run when a perfectly competitive firm experiences positive economic profits
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls. B) firms enter the industry, the market supply curve shifts rightward, and the market price falls. C) firms exit the industry, the market supply curve shifts leftward, and the market price rises. D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.