If a vintner has a comparative advantage in producing wine,
A. he can produce wine at a lower opportunity cost than other vintners.
B. he also has an absolute advantage in producing wine.
C. wine is the only product he can produce.
D. he can produce more wine using the same resources than other vintners.
Answer: A
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A successful cartel must divide the market among its members to prevent members'
A) marginal cost from exceeding their individual marginal revenues. B) output from decreasing. C) prices from rising above the cartel price. D) selling costs from rising.
Why might a country's savings rate have a high positive correlation to its investment rate?
A) A country's gains from intertemporal trade may have been large. B) governments' regulation to avoid inflation C) A country's savings rate and investment rate are generally not positively correlated but rather have negative correlation. D) governments' regulation to avoid large current account balances E) A government has not practiced sufficient fiscal regulation.
If a union is able to successfully lobby Congress to limit imports of rival products, and thus to raise the demand (and thus price) for the goods or services they make, then which of the following best describes the outcome? a. The supply of labor will increase
b. The demand for labor will increase. c. The supply of labor will decrease. d. The demand for labor will decrease.
The optimal level of resource use comes when
a. MRP exceeds input price. b. MRP is less than input price. c. MRP equals input price. d. use of the resource exhausts the producer's funds.