According to the Law of Comparative Advantage,
A) production should be based on who can produce a product lowest opportunity cost.
B) production should be based on who can produce more of a good.
C) production should take into account strategic interests, such as national security.
D) production should be for the people instead of for profit.
A
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In the above figure, a price ceiling of $4 would
A) result in a shortage in the long run. B) result in a surplus in the long run. C) have no effect. D) result in a surplus in the short run but have no effect in the long run.
All the countries of the EU participate in the Schengen Agreement
Indicate whether the statement is true or false
Trading off capital goods for increasing amounts of consumer goods today will most likely result in
A) increased long-term growth. B) decreased long-term growth. C) decreased prices in consumer goods. D) increases in the quantity of consumer goods.
Which is FALSE about perfect competition?
A) There are numerous sellers. B) Market entry and exit is unrestricted. C) There is no ability to set price. D) There is considerable product differentiation.