Under the principle of comparative advantage total output is greatest when each product is made by the country that
A. enjoys an absolute advantage.
B. has the lowest opportunity cost.
C. has the lowest wage rates.
D. has the lowest degree of specialization.
B. has the lowest opportunity cost.
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The health care system currently in place will be dramatically changed in the next four years.
A. True B. False C. Uncertain
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What will be an ideal response?
The increase in world oil prices during the 1970s was
A. the result of depletion of world reserves of oil. B. artificially created by OPEC. C. the result of extremely high growth rates in industrialized countries. D. fully reversed by 1982.
Which of the following is not an assumption of the Cournot model presented in the text?
A. Both firms maximize profits. B. If the first firm cuts price, the second firm will follow and if the first raises price, the second will not follow. C. There are two firms in an industry. D. Each firm takes the output of the other firm as given.