It's not likely that a country will specialize completely in one good even if it has a lower opportunity cost because
A. Comparative advantage is not a workable concept in the world economy.
B. Opportunity costs increase as more of a good is produced.
C. The country would end up inside its production possibilities curve.
D. The country would want to save some of the good for its own citizens.
Answer: B
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The primary benefits derived from tariffs usually accrue to the:
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Always Round Tire has a production function of Q = 300 L.75 K.5. In the short run, if L = 250 and K = 25, what is the quantity of tires supplied? What happens to the output of tires if L jumps to 300 and then 350? What law does this illustrate?
What will be an ideal response?
Refer to the information provided in Table 20.4 below to answer the question(s) that follow. Table 20.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 20.4. In Germany, the opportunity cost of 1 case of beer is
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