Consider a world of two countries facing opportunity costs and producing only wheat and cloth. In one hour, residents of Country A can produce a maximum of either 1 unit of wheat or 0.5 unit of cloth, whereas residents of Country B can produce a maximum of either 0.3 unit of wheat or 0.4 unit of cloth. Country B should export
A. wheat and cloth; country A should not export anything.
B. cloth and country A should export wheat.
C. wheat and country A should export cloth.
D. nothing and country A should export both wheat and cloth.
Answer: B
You might also like to view...
When we use the midpoint method to compute the price elasticity of demand we use
A) the original quantity and the average price. B) the original price and the average quantity. C) the average price and the average quantity. D) either the original or new price, and the average quantity. E) the average price and the original quantity.
_____________ rhythms are the daily rhythmic activity cycles, based on 24-hour intervals, that humans experience
a. Circadian b. Cybernetic c. Dynamic d. Calibrated
A dominant strategy is one that
a. makes every player better off b. makes at least one player better off without hurting the competitiveness of any other player c. increases the total payoff for one player d. is best for a player, regardless of what strategy other players follow e. leads to quicker convergence to market equilibrium
Which of the following is most likely to cause a rightward shift of the investment demand curve?
What will be an ideal response?