With regard to international trade,
A. Some countries do not have a comparative advantage in producing anything.
B. The market mechanism determines the terms of trade.
C. Rich countries benefit at the expense of poor countries.
D. The production possibilities exceed the consumption possibilities.
Answer: B
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Answer the following statement true (T) or false (F)
A business owner makes 50 items by hand in six hours. She could have earned $10 an hour working for someone else. If each item sells for $5 and the explicit costs total $14, accounting profit for 50 items is:
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