Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies all of the following except that
A) one country is more efficient in the production of the good than the other.
B) the inputs are not equally productive in the two countries.
C) the prices of the inputs are not the same in the countries.
D) the two countries use different technologies to produce the product.
A
You might also like to view...
Of the following, the federal government's largest source of revenue is the
A) sales tax. B) property tax. C) corporate income tax. D) Social Security tax. E) transfers from state and local governments.
You went to a craft show and paid an exorbitant price for an embroidered shawl that the seller said was hand-embroidered and had been imported from India
Several months later, you find a similar shawl in another showroom at a much lower price and found out that the one you bought was not an imported one. This is an example of ________ in the market for embroidered shawls. A) asymmetric information B) positive externalities C) negative externalities D) the free-rider problem