A basic assumption in comparing the production possibilities curves of two nations is that those possibilities curves reflect differences in:
A. Consumer tastes and preferences
B. Resource availability and technological capabilities
C. The nations' incomes and income distribution
D. Unemployment and inflation rates
B. Resource availability and technological capabilities
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Which institution tends to increase specialization in society?
A) Barter B) Government planning bureaus C) Money D) Price regulation
The greatest increase in productivity per capital results from
a. a larger population. b. more land. c. specialization and exchange. d. atmospheric conditions.
Suppose in India, one unit of labor can produce 330 pounds of rice or 110 shirts in a year. In China, one unit of labor can either produce 400 pounds of rice or 200 shirts in a year. Which of the following statements is true?
a. India has a comparative advantage in the production of rice. b. China has a comparative advantage in the production of rice. c. India has an absolute advantage in the production of shirts. d. India has an absolute advantage in the production of rice.
The game that oligopolists play in trying to reach the oligopoly outcome is similar to the game that the two prisoners play in the prisoners' dilemma
a. True b. False Indicate whether the statement is true or false