Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations.
B) produce a combination of goods that lies outside its own production possibilities frontier.
C) consume a combination of goods that lies outside its own production possibilities frontier.
D) increase the variety of products that it can consume with no increase in resources.
B
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Production efficiency exists when the least cost combination of inputs is used to produce output
a. True b. False
When a commercial bank borrows from the Fed,
A) the reserves of the bank fall. B) the bank can make more loans. C) it must be because the bank is not meeting its reserve requirements. D) the money supply falls.
On the consumption contract curve
A. supply equals demand of both goods. B. there will be no further voluntary exchange. C. all allocations are Pareto optimal. D. All of these are true.
High profits in a particular industry indicate that consumers want more of that industry's goods.
Answer the following statement true (T) or false (F)