No country can have an absolute advantage in the production of more than one good.

No country can have an absolute advantage in the production of more than one good.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Which of the following is true of the model of perfect competition?
 a. There is a high degree of product differentiation.
  b. Consumers do not have adequate information concerning the prices and quality of products in the market.
  c. There are significant barriers to entry and exit.
  d. There are only a few, large firms in the market.
  e. An individual firm cannot affect the market price.

QUESTION 3

One difficulty associated with average cost pricing regulation of natural monopolies is that firms have little or no incentive to minimize production costs.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

If Brazil can produce 5 shirts or 4 pounds of beef in a day, and Uruguay can produce 10 shirts or 2 pounds of beef in a day, then Brazil has a comparative advantage in the production of beef.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

You withdraw some of your savings to invest in a new business venture. Which of the following statements is true?
 a. The return you will earn from this new investment is your opportunity cost.
  b. The interest rate you would have earned in the bank is higher than the return from this investment.
  c. The return you expect to earn from this new investment must exceed your opportunity cost.
  d. The return you expect to earn from this new investment must equal your opportunity cost.

QUESTION 6

Many agricultural products, such as wheat, are produced by thousands of different producers that grow essentially the same product. The market structure that best describes such a model is:
 a. perfect competition.
  b. monopoly.
  c. monopolistic competition.
  d. oligopoly.
  e. monopsony.

QUESTION 7

The U. S. Postal Service historically has had a monopoly over the market for the delivery of first-class letters in the United States.
 a. True
  b. False
  Indicate whether the statement is true or false