The production possibilities for country X are either 6,000 bushels of soybeans or 10,000 bushels of wheat. The production possibilities for country Y are either 2,000 bushels of soybeans or 4,000 bushels of wheat. Which of the following is true?
A. Country Y should specialize in the growing of soybeans according to the principle of comparative advantage
B. Country X is the least cost producer of wheat
C. The domestic opportunity cost of wheat production is lower in country Y
D. The high cost producer of soybeans is country X
C. The domestic opportunity cost of wheat production is lower in country Y
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The kinked demand curve model explains pricing in monopoly markets
a. True b. False Indicate whether the statement is true or false
In the above figure, moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles, the opportunity cost of one ukulele is
A) 25 guitars.
B) 75 ukuleles.
C) 25 ukuleles.
D) 1 guitar.
Economists use M2 to measure the amount of money that is regularly used in transactions.
Answer the following statement true (T) or false (F)
A disadvantage of the proprietorship form of business organization is
A. that the owner must fight a lot of red tape to form the firm. B. its limited liability. C. that it can issue only one class of stock. D. its limited access to capital.