A country's comparative advantage can be illustrated by the graph of the production possibilities frontier
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
When the marginal benefit of an output exceeds the marginal cost
A. production of that output should be increased, in order to maximize economic surplus. B. increasing the production of that output would increase the missing surplus. C. reducing the production of that output would reduce the missing surplus. D. production of that output should be decreased, in order to maximize economic surplus.
At the equilibrium price, the quantity that buyers want to buy exactly equals the quantity that sellers want to sell
a. True b. False Indicate whether the statement is true or false
The concept of the margin deals with:
A) making incremental choices. B) one more or one less of something. C) doing a little more or a little less. D) all of the above.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower