When an economy is operating with maximum efficiency, the production of more of commodity A will entail the production of less of commodity B because
a. resources are specialized and are not shiftable.
b. resources are limited.
c. the structure of demand is fixed at any point in time.
d. material wants are insatiable.
b
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Open market operations refer to the purchase or sale of ________ to control the money supply.
A) corporate bonds and stocks by the Federal Reserve B) U.S. Treasury securities by the Federal Reserve C) corporate bonds and stocks by the U.S. Treasury D) U.S. Treasury securities by the U.S. Treasury
If the writer of an option, holds shares of the stock or an actual quantity of the commodity when she writes the call option on it, her position is said to be:
a. protected. b. exposed. c. covered. d. naked.
Comparative advantage has mixed results when it comes to predicting a country's trade patterns. Which of the following is FALSE?
A) There are many potential products an economy might export that use the same comparative advantage. B) A large share of international trade is not based on comparative advantage. C) Comparative advantage has proven completely incapable of predicting trade. D) Comparative advantage is a dynamic concept, which means that the spread of technology, improvement in skills, and learning-by-doing may alter a country's comparative advantage over time.
The type of contract selected depends on the information available to the parties
What will be an ideal response?