If two countries specialize,
a. the other countries trading with them cannot specialize
b. everyone in both countries gains
c. the total of goods produced increases
d. the other countries trading with them must specialize as well
e. all goods will be produced in both states
C
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If Abigail can make more candles in one day than Pierre, then Abigail has an absolute advantage in making candles
Indicate whether the statement is true or false
In the circular flow model, households provide all of the following resources to firms except
a. labor b. money c. capital d. entrepreneurship e. land
Comparative advantage is based on
A) comparing physical endowments, such as mineral resources, of two countries. B) differences in opportunity costs between two countries. C) one country being able to outproduce another country in some good. D) comparing the capital accumulation of two countries. E) two countries producing the same good.
The more profit a monopolist makes, the more inefficient is the monopoly outcome.
Answer the following statement true (T) or false (F)