When countries specialize in producing those goods in which they have a comparative advantage, they
A. allocate their resources more efficiently, but they do not necessarily maximize their combined output.
B. maximize their combined output, but they do not necessarily allocate their resources more efficiently.
C. do not necessarily maximize their combined output, and they also do not necessarily allocate their resources more efficiently.
D. maximize their combined output and allocate their resources more efficiently.
Answer: D
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Automatic stabilizers drive changes in
a. the total deficit. b. the cyclical deficit. c. the structural deficit. d. monetary policy. e. both b and c.
In the long-run, the firm can only expand output by adding more variable inputs (workers and raw materials)
a. True b. False Indicate whether the statement is true or false
The field of economics in which the tools of economics are used to understand the functioning of government is
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.