The theory of comparative advantage explains that the gains from international trade result from pursuing comparative advantage and producing at a lower opportunity cost.

Select whether the statement is true or false.
A. True
B. False


A. True
This statement is true. The theory of comparative advantage explains that the gains from international trade result from pursuing comparative advantage and producing at a lower opportunity cost.

Economics

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If demand increases and supply decreases, then equilibrium price must decrease, but equilibrium quantity is indeterminate

a. True b. False Indicate whether the statement is true or false

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An aggregate production function, when shown on a graph,

a. is linear and slopes upward b. is linear and slopes downward c. is horizontal d. is vertical e. slopes upward, and flattens out as more labor is used

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In the above figure, the firm will shut down if quantity falls below

A. A. B. B. C. C. D. D.

Economics

The corporate ethics problem is basically a problem of controlling:

A. opportunism. B. incentives. C. shirking by the managers. D. CEO salaries.

Economics