Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that:
A. the terms of trade will be 3X equals 1Y.
B. Alpha should specialize in Y and Beta in X.
C. Alpha should specialize in X and Beta in Y.
D. there is no basis for mutually beneficial specialization and trade.
B. Alpha should specialize in Y and Beta in X.
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What will be an ideal response?
Gross domestic product (GDP) decreases if the quantity of illegal drugs sold decreases
a. True b. False Indicate whether the statement is true or false
Exhibit 8-12 Marginal revenue and cost per unit curves
As shown in Exhibit 8-12, the firm will shut down in the short-run at a price below:
A. OA. B. OB. C. OC. D. OD.
Which of the following is correct?
A. If demand is elastic, an increase in price will increase total revenue. B. If demand is elastic, a decrease in price will decrease total revenue. C. If demand is elastic, a decrease in price will increase total revenue. D. If demand is inelastic, an increase in price will decrease total revenue.