Refer to the given data. If Alpha and Omega each was producing at alternative B before trade, the gain from specialization and trade would be:
A. 30 tons of wheat.
B. 15 tons of steel.
C. 30 tons of steel and 30 tons of wheat.
D. 60 tons of wheat and 60 tons of steel.
A. 30 tons of wheat.
You might also like to view...
Suppose technical change permits cable television companies to provide their services at lower rates. The share-the-gains, share-the-pains theory would predict that the regulators would
A) permit the firms to keep the savings and would lower prices only if the firms were pressured to do so. B) force the firms to pass all the savings on to consumers in the form of lower prices. C) force the firms to pass the savings on to consumers in the form of better service. D) force the firms to pass some of the savings on to consumers and to permit the firms to keep some of the savings themselves.
Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange
A) is 7 gallons of wine for 1 pound of beef, and Argentina imports beef. B) 0.25 gallons of wine for 1 pound of beef, and France imports beef. C) 0.25 pounds of beef for 1 gallon of wine, and Argentina imports wine. D) 0.4 pounds of beef for 1 gallon of wine, and France imports wine.
In Figure 35.1, what is the opportunity cost of motorcycles in the United States?
A. 2 DVD players per motorcycle. B. 1/2 of a DVD player per motorcycle. C. 1/3 of a DVD player per motorcycle. D. 1 DVD player per motorcycle.
The faster marginal utility declines the:
A. greater the elasticity of demand. B. larger the opportunity cost of the good. C. smaller the elasticity of demand. D. smaller the opportunity cost of the good.