A nation that has a comparative advantage in a product will not import any of it.
a. true
b. false
Ans: b. false
You might also like to view...
Assume that a consumer can spend $20 on two goods–pens and pencils. If the price of one pen is $5 and the price of one pencil is $2, which of the following combinations of the two goods represents a point on the consumers budget constraint?
A) 3 pens and 2 pencils B) 1 pen and 10 pencils C) 2 pens and 5 pencils D) 2 pens and 3 pencils
Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's profit at the profit maximizing sales price?
A. $30,000 B. $90,000 C. $120,000 D. -$30,000
Songwriters and composers press music companies to lower the price for music downloads because
a. demand for on-line music is inelastic b. profits are maximized where price elasticity of demand is -1.0 c. songwriter royalties are a percentage of sales revenue d. profits and total revenue are maximized at different quantities e. profits are maximized at the same prices as sales revenue
Which of the following statements is true about the Marxist's argument in favor of an egalitarian income distribution? a. Aside from the very rich, people are disposed toward income equality. b. Private property originates from theft and it is this property that creates unequal distribution of income
c. Government (welfare) and private charity doesn't work. d. Human beings are imperfect, and it is the unequal distribution of income that reflects this imperfection. e. Although income equality does not support the most efficient use of economy's resources, it's worth it anyway.