The basis for trade includes
A) Differing opportunity costs. B) Identical opportunity costs.
C) Autarky. D) Government regulatory actions.
Answer: A
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The difference between revenues and expenditures for inputs is known as
A. profits. B. debits. C. cash flow. D. net revenue.
"Oligopoly is the only market structure in which rivalry among firms takes place." Do you agree or disagree? Why?
What will be an ideal response?
Which of the following statements is true for the two countries illustrated in Figure 35.1?
A. Japan has an absolute advantage in motorcycles, the United States in DVD players. B. Japan has an absolute advantage in motorcycles. C. The United States has a comparative advantage in motorcycles, Japan in DVD players. D. The United States has a comparative advantage in DVD players.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.