Specialization and trade allow a country to
A. produce on its production possibility frontier and consume outside it.
B. produce and consume on its production possibility frontier.
C. produce and consume inside its production possibility frontier.
D. produce and consume outside its production possibility frontier.
Answer: A
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When production is characterized by persistently declining long-run average costs as output increases
A) the costs of production are greater when competition exists than when a single firm produces a good. B) it is impossible for two firms to compete in the market. C) the costs are lower if a single firm exists, and even if the firm is unregulated, price will still be lower with a single firm. D) there is no need for the government to limit competition by licensing requirements.
Although technically owning a share means the shareholder holds a share of everything that the firm owns, but in actuality he is only entitled to a share of the company's earnings
a. True b. False Indicate whether the statement is true or false
Why do economists avoid basing theories on the responses of a few individuals?
a. Individual responses are often incomplete. b. Individuals hate being tested. c. Individuals rarely know what they want. d. Individual responses are unpredictable.
A binding price ceiling is presented graphically as a(n):
a. price at equilibrium. b. price below equilibrium. c. price above equilibrium. d. inefficiently low quality of the good provided.