In a two-nation two-good world, if both nations have identical production possibilities curves with constant costs, then one nation would have:
A. No comparative advantage over the other nation
B. A comparative advantage in one good and a comparative disadvantage in the other good
C. No absolute advantage over the other nation
D. An absolute advantage in one good and an absolute disadvantage in the other good
A. No comparative advantage over the other nation
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Government ownership of the media:
A. causes an even greater degree of rational ignorance than private ownership. B. reduces rational ignorance because governments usually require a greater number of news broadcasts. C. is uncommon in African countries. D. decreases the effectiveness of special interest groups.
As it relates to the R&D decision, the interest-rate cost-of-funds curve:
A. usually slopes downward. B. is the marginal cost element in the MB = MC decision framework. C. indicates a constant rate of return, r. D. reflects the interest rate on bank loans but not the implicit interest rate on the use of retained earnings.
At equilibrium income:
a. planned and actual expenditure are equal. b. GDP will remained unchanged until an exogenous shock occurs. c. unplanned inventories are equal to zero. d. all of the above.
Suppose a firm is hiring resources l and m under purely competitive conditions to produce product Y, which sells for $2 in a purely competitive market. The prices of l and m are $10 and $4 respectively. In equilibrium the MPs of l and m, respectively,
are: A. 1 and 1. B. 2 and 5. C. 10 and 4. D. 5 and 2.