Trade
A. allows a person to consume at a point outside his production possibilities frontier.
B. limits a person's ability to produce goods and services on her own.
C. must benefit both traders equally.
D. is based on absolute advantage.
Ans: A. allows a person to consume at a point outside his production possibilities frontier.
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In the above figure, if the interest rate is 2 percent per year, the ________ because ________
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Suppose the supply of land is infinitely inelastic and the demand for land is downward sloping but inelastic at the current equilibrium. If the supply curve shifts rightward (e.g
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Which of the following is TRUE of incentives?
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The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. If the United States and France engage in free trade with each other, the international price of cheese will lie between ________ and Labor hours to make:In the United StatesIn France1 gallon of wine4.001.001 pound of cheese1.002.00
A. two gallons of wine per pound; four gallons of wine per pound. B. 0.5 gallon of wine per pound; one gallon of wine per pound. C. 0.25 gallon of wine per pound; two gallons of wine per pound. D. one gallon of wine per pound; four gallons of wine per pound.