The principle of comparative advantage states that a country should specialize in the production of those goods that have the highest opportunity costs
a. True
b. False
Indicate whether the statement is true or false
False
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Are whales excludable? Are they rival in consumption? How do we classify whales in terms of the four types of goods?
The short-run aggregate supply (SRAS) curve shows the quantity
A) demanded of all goods and services at different price levels, ceteris paribus. B) supplied of all goods and services at a particular price level, ceteris paribus. C) supplied of all goods and services at different price levels, ceteris paribus. D) supplied of GDP at a particular price level, ceteris paribus.
On the above graph, if the oligopolist's MC curve shifts from MC1 to MC2, the firm will charge:
A. the same price and sell more output; total revenue will increase. B. the same price and sell the same amount of output; total revenue will remain the same. C. a higher price and sell less output; it can't be determined whether total revenue will increase. D. a higher price and total revenue will increase.
There are currently N identical firms in a market. If it is a perfectly competitive market, the short-run market supply curve at any given price is
A) N times the supply of an individual firm. B) N - 1 times the supply of an individual firm. C) N plus the supply of an individual firm. D) It cannot be determined from the information provided.