Which of the following statements is FALSE?
A) Comparative advantage is the principle upon which trade patterns are based.
B) Opportunity cost measures the real cost to a country of producing a certain product.
C) The gains from trade are the result of differences in opportunity cost and comparative advantage.
D) A country that possesses an absolute advantage will always have a comparative advantage.
E) Comparative advantage is necessary and sufficient for trade.
D
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When the marginal product of labor exceeds the average product of labor, the average product must increase when employment increases
Indicate whether the statement is true or false
Gains in railroad productivity were caused by:
a. more powerful locomotives. b. automatic couplers. c. air brakes. d. All of the above are correct. e. Only a and b are correct.