A country that is half as productive at producing some goods as another country, but is one quarter as productive at producing others, will not be able to gain from trade
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent
A) your employer would have gained at your expense. B) your real wage will increase, but your nominal wage will decrease. C) the purchasing power of your wages will not change, since purchasing power is based on your nominal wage. D) the purchasing power of your real wages would be more than you anticipated.
Which of the following is correct?
i. A surplus puts downward pressure on the price of a good. ii. A shortage puts upward pressure on the price of a good. iii. There is no surplus or shortage at equilibrium. A) i and ii B) only iii C) ii and iii D) i and iii E) i, ii, and iii
A relatively large increase in the cost of electricity would likely
A. result in a large increase in the use of gas for home use immediately. B. cause an immediate large decline in the use of electricity. C. increase the use of gas and decrease the use of electricity after a time lapse. D. cause an equal reduction in the use of electricity immediately.
Refer to the information given in Table 16.6 below to answer the question that follows.
Table 16.6
Refer to Table 16.6. Assume that the marginal cost of hiring a police officer is $100. If A and B are the only two people in the society, the optimal number of police officers is
A. 1. B. 2. C. 3. D. indeterminate from this information.