Suppose the United States can produce either 1 ton of potato or 0.5 tons of wheat per worker per year, while Ireland can produce either 3 tons of potatoes or 2 tons of wheat per worker per year. There can be mutual gains from trade if:
a. the United States specializes in potatoes because of its comparative advantage in producing potatoes
b. the United States specializes in wheat production because of its absolute advantage in producing wheat.
c. the United States specializes in wheat production because of its comparative advantage in producing wheat.
d. the United States specializes in potatoes because of its absolute advantage in producing potatoes.
a
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One of the opportunity costs of economic growth is
A) capital accumulation. B) technological change. C) reduced current consumption. D) the gain in future consumption.
Mutually Assured Destruction was a standing policy during the Cold War, in which the United States and the USSR maintained and expanded nuclear arsenals beyond practical levels. What could explain such a phenomenon?
A) insane public officials who were bent on world domination B) a prisoner's dilemma C) a leader-follower type game D) tacit collusion