A country will specialize in the good for which
A) it has absolute advantage.
B) it has moderate production costs.
C) it can produce at minimum average cost.
D) it has comparative advantage.
D
You might also like to view...
The primary objective of a for-profit firm is to ___________
a. maximize agency costs b. minimize average cost c. maximize total revenue d. set output where total revenue equals total cost e. maximize shareholder value
The figure above shows cost curves for a perfectly competitive firm. Suppose that market price is $2.60. A firm producing 800 units of output
A. is earning the maximum amount of profit, $2,080. B. should produce 500 units of output instead, to earn profits of $500. C. should produce 1100 units of output instead, to earn profits of $1,100. D. should shut down E. is earning the maximum amount of profit, $880.
Which of the following is most likely an example of diseconomies of scale?
A. Alpha-Beta Inc. raised its price by 10 percent after a 5 percent increase in production costs. B. The XYZ Co. increased production capacity by 25 percent and experienced a 30 percent increase in its total cost. C. Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant. D. The per-unit costs on Excel Publishing Company's manuals fell after it received a large order from the government.
If government purchases are $400 million, taxes are $700 million, and transfers are $200 million, which of the following is true?
A) Public saving is $500 million. B) The budget deficit is $100 million. C) The budget deficit is $500 million. D) Public saving is $100 million.