The United States would have an absolute advantage compared to Canada in the production of wheat if
A. the United States uses fewer resources to produce wheat than Canada does.
B. wheat sells for a higher price in the United States than in Canada.
C. the demand for wheat is higher in the United States than in Canada.the United States.
D. wheat can be produced at lower cost in terms of other goods than it could be in Canada.
Answer: A
You might also like to view...
If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:
a. product A is more price elastic than product B. b. product B is more price elastic than product A. c. consumers are more sensitive to price changes in product A than in product B. d. product B is more price inelastic than product A. e. products A and B must be substitutes.
Which of the following is NOT required for paper dollars to work as a medium of exchange?
a. An established and regulated system of fiat money b. Intrinsic value backed by gold c. Government prosecution of counterfeiters d. Acceptance as part of social convention
When prices rise, what happens to income?
a. It goes down. b. It buys less. c. It rises to meet prices. d. It is used to buy different things.
A good is a blank product that consumers, firms, or governments wish to purchase.
Answer the following statement(s) true (T) or false (F)