For a country producing two goods, the opportunity cost of one good will be the inverse of the opportunity cost of the other good
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following empirical studies cast the most doubt on the Heckscher-Ohlin model?
A) the study by Wassily Leontief B) the study by Bowen, Leamer, and Sveikauskas C) the study by David Ricardo D) the study by Adam Smith E) the study by Davis and Weinstein
Imperfect information is a rationale for regulation
a. True b. False Indicate whether the statement is true or false
When a price floor is above the equilibrium price,
a. quantity demanded will exceed quantity supplied, so there will be a shortage. b. quantity supplied will exceed quantity demanded, so there will be a surplus. c. the market will be in equilibrium. d. This is a trick question because price floors are generally set below the equilibrium price.
The longer any price change persists, the
A. more likely price will return to its original level. B. greater is the price elasticity of demand. C. more difficult it is to alter quantity demanded. D. lower is the price elasticity of demand.