In a two-nation, two-good world, if both nations have identical production possibilities curves with constant costs, then one nation would have
A. no comparative advantage over the other nation.
B. an absolute advantage in one good and an absolute disadvantage in the other good.
C. a comparative advantage in one good and a comparative disadvantage in the other good.
D. no absolute advantage over the other nation.
Answer: A
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Government goods are provided to the consumer at a zero price. This means that
A) the cost to society is zero. B) the political system is run by proportional rule. C) people are getting something for nothing. D) the cost of the goods is the value of the resources used to produce the good.
Which of the following is true of perfect price discrimination compared to charging a single price?
a. Output is greater. b. Output is the same, but profit is higher. c. Output is lower, but profit is higher. d. Output is lower, and profit could be higher or lower. e. Output is the same, but profit is lower.
Asymmetric information generally leads to efficient resource allocation.
Answer the following statement true (T) or false (F)
Which of the following expresses 4.85%?
A. 0.485 B. 0.0485 C. 4.850 D. 0.00485