International trade allows a country's consumption possibilities to exceed its production possibilities.
Answer the following statement true (T) or false (F)
True
A country can consume beyond its production possibilities due to the fact that the country can purchase what it needs abroad for a lower cost than it can produce the goods, allowing it to consume more.
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Which of the following is accurate regarding government expenditures in the United States?
a. The federal government spends considerably more than state and local governments combined. b. The federal government spends more than local governments but less than state governments. c. Local governments spend more than state governments, which in turn, spend more than the federal government. d. Since 1930, total government expenditures as a share of GDP have declined.
Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run?
a. Both will sell their products at a price equal to average total cost, but only the price taker will produce at minimum average total cost. b. Both will sell their products at a price equal to average total cost, but only the competitive price searcher will produce at minimum average total cost. c. Only the price taker will sell its product at a price equal to average total cost. d. Only the competitive price searcher will sell its product at a price equal to average total cost.
Daily Steel produces bars that cost $4 to make, and it receives $7 for them. The difference between these two prices is known as ______.
a. consumer surplus b. producer surplus c. deadweight loss d. price control
If a firm uses only capital and labor as inputs, then what should the firm do at a given rate of production if the marginal physical product of labor per last dollar spent is lower than the marginal physical product of capital per last dollar spent?
A) The firm should increase both the quantity of capital and the quantity of labor. B) The firm should decrease both the quantity of capital and the quantity of labor. C) The firm should increase the quantity of capital and reduce the quantity of labor. D) The firm should decrease the quantity of capital and increase the quantity of labor.