A country that has absolute advantage in producing all goods does not benefit from trade.
a. true
b. false
Ans: b. false
You might also like to view...
When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. When Acme Dynamite produces 250 units of output, its profit is:
A. $6,250. B. $5,750. C. $3,750. D. $4,250.
Why are economists so often skeptical of replacing GDP as a measure of well-being?
A. Economists see little wrong, other than measurement errors, in the way GDP is computed. B. Economists think that the alternatives cannot take changes in price level into account in an acceptable manner. C. Economists believe that only market activity can be and should be measured. D. The alternatives involve value judgments about social goals that some or many economists find controversial.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50The expected value of project C is:
A. $10. B. $20. C. $5. D. None of the answers are correct.
Refer to Table 2-19. What is Betty's opportunity cost of making a bench?
A) 2 statues B) 1/2 of a statue C) 2.8 statues D) 1.75 benches