Consider the following information, and assume that opportunity costs are constant: On one hand, residents of Country A can produce more corn in a year than residents of Country B, but they can produce computers at a lower opportunity cost than residents
of country B. On the other hand, residents of country B can produce more computers in a year than residents of Country A, but they can produce corn at a lower opportunity cost than residents of country A. It can be concluded that residents of
A) Country A should produce corn and trade it for computers produced in Country B.
B) Country B should produce computers and trade them for corn produced in Country B.
C) Country A should produce computers and trade them for corn produced in Country B.
D) both countries should choose not to trade.
Answer: C
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Suppose price decreases from $27.00 to $13.00. Using the mid-point formula, the percentage change in price is:
A. 0.35 = 35 percent. B. 0.7 = 70 percent. C. 0.7 = 70 percent. D. 14 percent.
Pure monopoly markets are very common in the real world.
Answer the following statement true (T) or false (F)
Implicit costs will be zero in the long run
Indicate whether the statement is true or false
By definition, inalienable rights:
A. would never be violated in a free market environment. B. do not exist. C. cannot be sold or given away. D. belong to individuals, and so they can sell them or give them away.