If Bolivia can produce 6 calculators or 3 televisions in a day, and Argentina can produce 4 calculators or 12 televisions in a day, then Bolivia would be willing to trade 1 calculator for 1 television with Argentina
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Ownership of a corporation is divided into shares that are claims on the firm's __________ and these shares are also referred to as ____________
a. assets and liabilities; bonds b. assets and liabilities; stocks c. liabilities and earnings; stocks d. assets and earnings; stocks e. assets and earnings; bonds
A true public good is characterized by
a. depletability but not excludability. b. excludability but not depletability. c. both depletability and excludability. d. neither depletability nor excludability.
Answer the following statement true (T) or false (F)
1) Average fixed costs diminish continuously as output increases. 2) Economic profit is found by subtracting accounting costs from total revenue. 3) A firm's economic profit is usually higher than its accounting profit. 4) The law of diminishing returns explains why short-run marginal cost curves are upsloping. 5) The law of diminishing returns explains diseconomies of scale.
Suppose the interest rate on one-year U.S. T-bills is 4 percent and the interest rate on one-year British T-bills is 6.5 percent. If the dollar is at a one-year forward premium against the British pound of 3 percent, the covered interest differential is
A. equally favoring investments in both nations. B. in favor of investments in the United States. C. the same as the uncovered interest differential. D. in favor of investments in the United Kingdom.