If Croatian firms can make 600 pitchforks or 100 hammers in a week and Slovenian firms can make 200 pitchforks or 200 hammers in a week, then
A) the costs of production differ in each country.
B) the Croats have an incentive to specialize in hammers.
C) the Slovenes have an incentive to specialize in pitchforks.
D) all of the above are true.
A
Economics
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If the nominal interest rate is 6% and the inflation rate is 2% then the real interest rate is
A) 8%. B) 4%. C) 3%. D) 2%. E) 1%.
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Output in excess of potential GDP
a) implies a negative output gap b) describes a recession c) is impossible d) is unsustainable e) creates deflation
Economics