The Ricardian model attributes the gains from trade associated with the principle of comparative advantage result to
A) differences in technology.
B) differences in preferences.
C) differences in labor productivity.
D) differences in resources.
E) gravity relationships among countries.
C
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Burkes Inc should stop production in the short run if the market price of its product is less than its average total cost of production
Indicate whether the statement is true or false
Today, people changed their expectations about the future. This change a. can cause a movement along a demand curve
b. can affect future demand but not today's demand. c. can affect today's demand. d. cannot affect either today's demand or future demand.
What matters most in determining the efficient distribution of production over the world is a. absolute advantage
b. efficiency. c. the stock of resources. d. comparative advantage.
Suppose a subsidy is offered to consumers of education as a means of internalizing the externalities associated with education. If the subsidy accurately reflects the external benefits of education, then the new demand curve for education coincides with which other curve?