Assume that for Canada the opportunity cost of producing 1 television set is 2 bushels of wheat. Assume that for the U.S. the opportunity cost of producing 1 bushel of wheat is 2 television sets. All other things being equal:
A. Canada should export televisions and import wheat.
B. Canada should export wheat and import televisions.
C. the United States should export wheat and import televisions.
D. the United States should export televisions and import wheat.
B. Canada should export wheat and import televisions.
You might also like to view...
What do economists call the situation where a hired manager does not have the same interests as the owners of the business?
A) a financial intermediary problem B) a principal-agent problem C) conquest and control D) a financial problem
The English word that comes from the Greek word for "one who manages a household" is
a. market. b. consumer. c. producer. d. economy.
Assume that the economy is currently in short-run equilibrium, then the dollar appreciates in the foreign exchange market. Describe the correct sequence of events that happen as the economy adjusts to a new short-run equilibrium (be sure to state what the impact would be on the price level and Real GDP)
A movement along a demand curve is called a change in:
a. income. b. quantity demanded. c. demand. d. tastes. e. population.