Answer the following questions true (T) or false (F)
1. If a country produces only two goods, then it is not possible to have an absolute advantage in the production of both goods.
2. In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it must also have a comparative advantage in the production of both goods.
3. If the opportunity cost of producing more of one good remains the same as more of that good is produced, then the production method is inefficient.
1. FALSE
2. FALSE
3. FALSE
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When a currency decreases in value relative to another currency, the currency has
A) declined. B) appreciated. C) accelerated. D) decelerated. E) depreciated.
A sales tax on sellers a good leads to a loss of consumer surplus, but a price ceiling or a price floor on that same product will not
Indicate whether the statement is true or false
Saving exceeds domestic investment in Japan, which generates a financial account deficit in Japan's balance of payments
Indicate whether the statement is true or false
Which of the following is the best example of an oligopoly?
a. Area restaurants. b. The automobile industry. c. Agricultural markets free of government support. d. Local utilities.