If two countries have production possibilities curves with different slopes, there is no possibility for gains from trade
a. True
b. False
Indicate whether the statement is true or false
False
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Since 1940, the U.S. government has experienced
A) twice as many annual budget surpluses as annual budget deficits. B) only one year with a budget surplus. C) about the same number of years with budget deficits as with budget surpluses. D) many more budget deficits than budget surpluses.
A reduction in unemployment benefits will
A) not change the amount of frictional unemployment because unemployment benefits affects only structural unemployment. B) increase the amount of frictional unemployment. C) decrease the amount of frictional unemployment. D) increase the amount of cyclical unemployment. E) not change the amount of frictional unemployment because unemployment benefits affects only cyclical unemployment.
If new firms enter a monopolistically competitive market structure in the long run, ________
A) the demand curves faced by the existing firms shift to the right B) the demand curves faced by the existing firms become perfectly inelastic C) the demand curves faced by the existing firms become more elastic D) the supply curves of the existing firms become relatively more elastic
The dominant school of thought prior to the 1930s was known as the:
a. Keynesian school. b. classical school. c. rational expectations school. d. supply-side school. e. monetarist school.