Specialization and international trade lead to
A) an outward shift in the production possibilities curve.
B) an inward shift in the consumption possibilities frontier.
C) a lower opportunity cost of domestic production of all goods.
D) an enhanced level of consumption.
Answer: D
You might also like to view...
If information about the total cost is not given for every possible 1 unit change in quantity, marginal cost can still be computed as
a. the price of labor divided by the quantity of labor. b. the price of labor divided by the marginal product of labor. c. fixed cost divided by the marginal product of labor. d. variable cost divided by the marginal product of labor.
If the income elasticity of demand for a good is zero, then
a. the goods inferior. b. the good is normal. c. the good violates the Law of Demand. d. consumption of the good does not change as income changes.
In the above figure, if the economy is in equilibrium at E1, then
A) the economy is producing below its potential long-run equilibrium at full employment. B) the economy is producing above its potential long-run equilibrium at full employment. C) there is an inflationary gap in the economy. D) the economy is in a period of high inflation.
Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table. WorkersPages/hour0014027531054125514061507155 If each page sells for $2 and the market wage is $15 per hour, then this firm will hire ________ workers per hour.
A. 4 B. 6 C. 5 D. 7