Given two economic systems, A and B, if economy A has a comparative advantage in the production of widgets, then
A. economy A would not benefit from the specialization of production.
B. economy A must give up less of all other goods to produce widgets than economy B.
C. economy A is less efficient in the production of some goods than economy B.
D. the inputs necessary to produce widgets in economy A cost less than in economy B.
Answer: B
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The supply curve of a perfectly competitive firm in the short run is
A) the portion of the firm's marginal cost curve above the minimum point of the average total cost curve. B) the firm's average variable cost curve. C) the portion of the firm's marginal cost curve above the minimum point of the average variable cost curve. D) the portion of the firm's marginal cost curve below the minimum point of the average variable cost curve.
A point to the left of the BP curve would represent
A) a balance of payments deficit. B) a balance of payments surplus. C) internal disequilibrium. D) Both A and C.
In the classical model,
A) unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work. B) unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers. C) wages will go up but never go down. D) full employment will never be reached.