Suppose that the United States and Spain both produce cognac and handbags. In the United States, cognac sells for $20 a bottle and handbags sell for $80. In Spain, cognac sells for 30 euros a bottle and handbags sell for 40 euros. Given this information, trade will flow in both directions if the price of a dollar is between

The government may choose to do nothing to reduce monopoly inefficiency because the "fix" may be worse than the problem

a. True b. False Indicate whether the statement is true or false

Each of the following statements about capital are correct EXCEPT

A. Capital is a "man"-made good used to produce other goods and services. B. Japan has more capital than any other country in the world. C. Office buildings and shopping malls are examples of capital. D. Capital is considered a passive resource.