Two nations, Alpha and Beta, can both produce steel. Alpha has a comparative advantage in the production of steel if it
A. has a higher domestic opportunity cost of producing steel than Beta.
B. uses more steel than Beta.
C. can produce more steel than Beta.
D. has a lower domestic opportunity cost of producing steel than Beta.
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price charged to sell this output?
A) P = $65; Q = 14 B) P = $70; Q = 13 C) P = $80; Q = 11 D) P = $85; Q = 10
When there are many buyers and sellers, no significant barriers to entry, and a differentiated product, the market structure is called
a. an oligopoly b. perfect competition c. monopolistic competition d. a monopoly e. unbalanced monopoly
Describe what will happen to an economy in which the money supply consists of gold coins when a major new source of cheap gold is discovered