Trade between nations is based on absolute advantage, which occurs when a country has a lower opportunity cost of producing a good

Game theory is the:

a. branch of economics that looks at political motives. b. branch of economics that looks at psychological motives. c. science of designing effective product differentiation. d. study of behavior in situations of interdependence.

Prohibiting price increases in situations of true scarcity

a. prevents the market mechanism from reallocating resources more efficiently. b. discourages production. c. may lead to extreme shortages of vitally needed products. d. All of the above are correct.