Modern traditional economics relies on complex models that are easy to test in real life.
Answer the following statement true (T) or false (F)
False
Modern traditional economics relies on simple models that are easy to test to make sure that the model fits reality.
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The convergence theory is also known as:
A. the catch-up effect. B. Say's law. C. the income effect. D. Moore's law.
Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. Which of the following statements is true? a. Alpha should export to Omega, but Omega should not export to Alpha
b. Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible. c. If Alpha specializes in growing apples and Omega specializes in growing oranges, they could both gain by specialization and trade. d. If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.
When a country participates in international trade, its consumption possibilities
A. Always exceed its production possibilities. B. Must still equal its production possibilities. C. May increase, but its trading partners consumption possibilities will decrease. D. Will increase if it is a rich country and will decrease if it is a poor country.
If the firm were a perfect competitor, how much would its price be in the long run?
