When two countries specialize in the production of different goods and trade with each other, it is most likely each country will
A) export the goods in which it has a comparative advantage.
B) export the goods in which it has an absolute advantage.
C) import the goods in which it has a comparative advantage.
D) import the goods in which it has an absolute advantage.
A
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All else constant, an improvement in technology would cause a firm's marginal, average variable, and average total cost functions to increase (graphically, shift up)
Indicate whether the statement is true or false
In differentiating between the short- and long-run elasticities, when economists talk about short-run elasticities,
a. b and c. b. there is no need to mention short versus long run. c. the only issues are price and quantity. d. short-run elasticities are usually higher. e. short-run elasticities are usually lower.
An expansionary fiscal policy shifts the aggregate demand curve
A) to the right and is used to close an inflationary gap. B) to the right and is used to close a recessionary gap. C) to the left and is used to close an inflationary gap. D) to the left and is used to close a recessionary gap.
Firms that shut down must be earning negative profits in the short run.
Answer the following statement true (T) or false (F)