The idea of comparative advantage implies that people or countries
A) should specialize in the production of goods.
B) can gain from trading.
C) can consume at a point outside their production possibilities frontier.
D) all of the above.
D
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Refer to the scenario above. What is the equilibrium outcome in this case?
A) Both firms will dump their waste into the river. B) Neither of the firms will dump its waste into the river. C) Firm 1 will dump its waste into the river, while Firm 2 will not dump its waste. D) Firm 2 will dump its waste into the river, while Firm 1 will not dump its waste.
The law of diminishing marginal returns implies that, in the short run:
a. output must fall beyond a certain point. b. price must fall beyond a certain point. c. the marginal product of the variable input must eventually decrease. d. wages of workers must eventually increase. e. total cost must fall beyond a certain point.
If a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are in the given table, who will be happiest if the lab and library are voted on first?
A. Ernie
B. Fiona
C. David
D. All people would be equally happy.
Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. If the firm will charge a monthly access fee plus a per hour rate, the monthly access fee will equal
A) $1. B) $5. C) $8. D) $16.