It is not possible to have an absolute advantage in producing a good or service without having a comparative advantage
Indicate whether the statement is true or false
FALSE
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Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point directly to the left of it. Assuming that the PPF has not shifted, this could be due to
A) a gain of resources. B) a loss of resources. C) technological improvement in the production of both goods. D) a new law that interferes with productive efficiency.
If the price of a complement for tires decreases, all else equal,
A. demand for tires will decrease. B. demand for tires will increase. C. quantity demanded for tires will decrease. D. quantity supplied for tires will decrease. E. supply for tires will increase.
Regulators often adopt policies that benefit
A. the firms regulated rather than consumers. B. consumers and injure producers. C. no one. D. only the government.
Which of the following is NOT true about dead capital?
A) Companies will be less likely to want to invest when a country has a lot of dead capital. B) Dead capital can inhibit economic growth. C) Dead capital will lead to higher investment returns. D) Dead capital can lead to a situation where resources are not efficiently employed.