If country A exports good X to country B and country B exports good Y to country A, it is most likely that
A) A has an absolute advantage in the production of good X.
B) B has a comparative advantage in the production of good Y.
C) the opportunity cost of domestic production of good Y for country A is lowered with trade.
D) B is producing less of good Y than in the no-trade case.
Answer: B
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Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. The price of cocoa beans shot up 44 percent in 2008. How did this affect Rogue's short run costs?
A) Short run variable costs would increase. B) Short run fixed costs would decrease. C) Short run total costs would decrease. D) Short run average fixed costs would increase.
The amount of a particular good that sellers in a market will sell at a given price during a specified period is called:
A. quantity demanded. B. quantity supplied. C. demand. D. supply.
An increase in labor productivity would cause a rightward shift of the labor demand curve.
Answer the following statement true (T) or false (F)
A source of demand volatility for agricultural products is:
A. The strict application of "100 percent parity" by the Department of Agriculture B. A sharp fluctuation in foreign demand for U.S. farm products C. The large grain harvest which resulted from excellent weather D. The increasing mechanization of farms