Refer to the data below. Which of the following statements about the two nations is correct based on the principle of comparative advantage?
Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the production possibilities for rice and corn given in the following table:
A. Xat should specialize in the production of corn
B. Wat should specialize in the production of rice
C. Xat has a comparative advantage in the production of rice
D. Xat has a comparative advantage in the production of corn
C. Xat has a comparative advantage in the production of rice
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The opportunity cost of a movement from point N to J would
A. be the lost production of some capital goods.
B. be the lost production of some consumer goods.
C. be slower economic growth in the future.
D. not involve any sacrifice of either capital or consumer goods.
When the government controls the price of a product, causing the market price to be above the free market equilibrium price,
A. some, but not all, sellers can find buyers for their goods. B. only consumers gain. C. both producers and consumers gain. D. all producers gain.
When a single person (or small group) has the ability to influence market prices, there is
a. competition.
b. market power.
c. an externality.
d. a lack of property rights.
If government requires a firm to implement a nudge, the government's action is not a nudge.
Answer the following statement true (T) or false (F)