When a country has a lower opportunity cost in producing a good than any other country,
A. It has favorable terms of trade in producing the good.
B. It necessarily has an absolute advantage in producing the good.
C. Production possibilities are no longer limited.
D. Consumption possibilities will increase with specialization and trade.
Answer: D
You might also like to view...
Define marginal cost. Is it different from the concept of willingness to accept?
What will be an ideal response?
During a recession, firms' expected profit from investment ________ so the demand for loanable funds curve ________
A) rises; shifts rightward B) falls; shifts leftward C) rises; shifts leftward D) falls; does not shift E) falls; shifts rightward
If demand is perfectly inelastic,
a. the percent change in quantity demanded divided by the percent change in price is zero b. the demand curve is a vertical line c. supply is perfectly inelastic too d. consumers have power over prices e. the percentage change in price divided by the percentage change in quantity demanded is zero
If a resource is in fact becoming scarcer, then one should expect
a. the price of the resource to rise. b. less demand for the resource as people try to conserve. c. greater supply as people reduce inventories before it is all gone. d. all of the above.