You should specialize in the production of a good if you have
A. a comparative advantage.
B. more human resources than your trading partner.
C. an absolute advantage.
D. more capital resources than your trading partner.
Answer: A
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Price-taking producers have horizontal marginal revenue curves.
Answer the following statement true (T) or false (F)
What would best characterize the relationship between corn prices, wheat prices and the public sale of western land (OH, IL, IN, MI, IA, WI, MO) between 1815-1860?
a. All three were very positively correlated. b. Land sales increased first, which drew people to move and produce more crops, which increased the crop prices. c. As land sales increased, corn prices increased and wheat prices decreased as farmers substituted from wheat to corn. d. Land sales were negatively related to both the wheat and corn prices.
People become unemployed when they
A) leave university and start seeking work. B) retire. C) are on maternity leave. D) quit working to go to university. E) all of the above.
Exhibit 2-6 Production possibilities curve data A B C D E F Capital goods150 140 120 90 50 0 Consumer goods 0 20 40 60 80 100 In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150. B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced. C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. D. the amount of consumer goods produced must be greater than zero.