In a two-person, two-good economy, the gains to specialization will be larger when:
A. one person has an absolute advantage in both goods.
B. there are large differences between the individuals in their opportunity costs of producing the two goods.
C. there are small differences between the individuals in their opportunity costs of producing the two goods.
D. neither person has an absolute advantage.
Answer: B
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Which of the following is not a political jurisdiction?
A. Cook County B. Alabama C. New York City D. California research triangle
Refer to Figure 10.2. If in this economy the MPC = 0.6, Y2 = $50 billion, and AE2 is $5 billion below AE1, potential GDP is
A) $53 billion. B) $55 billion. C) $58.3 billion. D) $62.5 billion.
To which of the following regions did Prince Henry the navigator send one expedition after another?
a. Western coast of Africa b. The West Indies c. Eastern coast of India d. Western coast of North America e. Eastern coast of South America
Unlike the situation for a firm in perfect competition, positive economic profit exists for firms in monopolistic competition for both the short run and in the long run.
Answer the following statement true (T) or false (F)