The opportunity costs of production in two countries engaged in trade
a. determine which country has an absolute advantage
b. influence their domestic inflation rates
c. lead to a higher level of economic efficiency
d. create shifts of the production possibilities frontiers (PPF's) of both nations
e. define the limits of the terms of trade
E
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Which of the following groups is an investment bank NOT likely to visit during a "road show"?
A) institutional investors B) individual investors C) university endowments D) mutual funds
Which of the following is the best example of land?
A. The water used to make a soft drink. B. A factory that produces new goods and services. C. The ethanol refined from corn. D. A barber's chair.
In the IS-LM model, a decrease in government purchases leads to a(n) ______ in planned expenditures, a(n) ______ in total income, a(n) ______ in money demand, and a(n) ______ in the equilibrium interest rate.
Fill in the blank(s) with the appropriate word(s).
Refer to the following figure. At a price of $10, the point elasticity of demand for D3 is ________ and marginal revenue is ________.
A. -0.5; negative B. -5; positive C. -0.2; negative D. -1; zero