According to the theory of comparative advantage, a country exports goods when it can produce those goods ________ than other countries.
A. at a higher opportunity cost
B. using fewer resources
C. at a lower opportunity cost
D. using more resources
Answer: C
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If Tom does not tattle, what would Sarah's best response be
a. Hit b. Not hit c. Run d. Hide
If a good is inferior and income decreases, then
A. the supply curve will shift to the left. B. the supply curve will shift to the right. C. the demand curve will shift to the left. D. the demand curve will shift to the right.
The Five Forces Model helps illustrate the five competitive forces that determine the ________ in an industry.
A. level of competition and profitability B. profitability and degree of product differentiation C. price and quality of output D. level of R&D and price of output
In terms of a nation's production possibilities frontier, what impact does international trade have?
A) International trade shifts the nation's production possibilities frontier outward. B) International trade shifts the nation's production possibilities frontier inward. C) International trade allows the nation to consume at a point outside its production possibilities frontier. D) International trade shifts the production possibilities frontier outward for the goods that are exported and inward for the goods that are imported. E) International trade shifts the production possibilities frontier outward for the goods that are imported and inward for the goods that are exported.