If a country can produce cars with a lower opportunity cost than its trading partners, then it must have a:
A. Low market price for cars.
B. Comparative advantage in cars.
C. A trade deficit.
D. A trade surplus.
B. Comparative advantage in cars.
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Under earnings-sharing regulation, if a firm's profits ________ above a certain level, they must be shared with the firm's ________
A) rise; customers B) fall; customers C) rise; suppliers D) fall; suppliers E) rise; competitors
Under a per se approach to the antitrust laws,
a. the government must prove some anticompetitive outcome from the act. b. large size alone can be an antitrust violation. c. the action will pass antitrust scrutiny if it is shown to be reasonable. d. the only real question is whether the prices charged are reasonable. e. the courts have ruled antitrust laws unconstitutional
When a natural monopoly exists in an industry, which statement will be true?
a. The per-unit costs of production will be lowest when there are numerous producers in the industry. b. The per-unit costs of production will be lower for the smaller firms than for the larger firms. c. The per-unit costs of production will be minimized at the output that maximizes the industry's profitability. d. The per-unit costs of production will be lowest when a single firm generates the entire output of the industry.
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$.75The Corner Store$2.50$2.00If the oranges were grown and the jam produced in the year 2015, but the marmalade was sold at The Corner Store in the year 2016, what is the contribution of these transactions to GDP in the year 2016?
A. $0.00 B. $0.50 C. $2.50 D. $2.00