Suppose Hank and Tony can both produce corn. If Hank's opportunity cost of producing a bushel of corn is 2 bushels of soybeans and Tony's opportunity cost of producing a bushel of corn is 3 bushels of soybeans, then Hank has the comparative advantage in the production of corn

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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If national saving increases, ________. (Assume that the capital account is zero and net transfers are zero.)

A) the sum of domestic investment and net exports must decrease B) the sum of domestic investment and foreign investment must decrease C) the sum of domestic investment and foreign investment must increase D) foreign investment must decrease to cover the gain

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Do donor countries gain anything from their aid?

What will be an ideal response?

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Changing the price of a good will usually result in a negative externality

Indicate whether the statement is true or false

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