If the opportunity cost of producing a good domestically exceeds the opportunity cost of purchasing it on the world market, a country can gain by
A. decreasing production and increasing exports.
B. increasing production and decreasing exports.
C. increasing production and decreasing imports.
D. decreasing production and increasing imports.
Answer: D
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If C = $250, I = $50, G = $60, NX = -$20, and NFP = $5, how much is GNP?
A) $365 B) $335 C) $340 D) $345
Assume that an individual consumes only coffee and bagels and that the last cup of coffee yields 12 utils and the last bagel 6 utils. If the price of a cup of coffee is $1 and the price of the bagel is $.50, we can conclude that the:
a. consumer should consume more coffee and fewer bagels. b. price of coffee is too high relative to bagels. c. consumer should consume less coffee and more bagels. d. consumer is in equilibrium.
Engel's Law, relating to the demand for food,
a. states that food demand is inelastic b. holds more strongly in developed countries c. indicates why the food sector experiences more than proportionate increases in quantities demanded as incomes rise d. shows why food demand expands as citizen education improves e. was only relevant when established in the 1800s
When the court requires evidence that a monopoly actually used its size to violate antitrust laws, this criterion is called
a. rule of reason b. Sherman antitrust c. per se d. countervailing power e. creative destruction