Based on the above figure, if countries "A" and "B" faced the production possibilities curves above, both countries would benefit if
A) they did not trade.
B) "A" produced industrial goods, and "B" produced agricultural goods.
C) "B" produced industrial goods, and "A" produced agricultural goods.
D) they both produced both industrial and agricultural goods.
B
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The main source of economies of scale is
A) better management. B) constant returns to plant size. C) specialization. D) long-run cost curves eventually sloping downward. E) increases in the labor force not matched by increases in the plant size.
Unequal incomes can arise from: a. discrimination
b. worker preferences. c. differences in educational backgrounds. d. all of the above.
Which statement is false?
A. Barter is the alternative to money in the United States. B. Barter involves a double coincidence of wants. C. M2 is larger than M1. D. Checks are considered money.
Refer to the diagram. At output level Q total fixed cost is:
A. 0BEQ.
B. BCDE.
C. 0BEQ - 0AFQ.
D. 0CDQ.