Colombia produces coffee with less labor and land than any other country. This implies that it has:

a. a comparative advantage in coffee production.
b. a perfectly elastic demand curve for coffee.
c. a perfectly inelastic supply curve of coffee.
d. an absolute advantage in coffee production.

d

Economics

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Refer to the data for a private closed economy. If gross investment is $12 billion, the equilibrium level of GDP will be:



A.  $380.
B.  $370.
C.  $360.
D.  $350.

Economics

Why are total expenditures on a good maximized at the point on the demand curve where the price elasticity of demand equals -1? Explain your answer using the appropriate algebra.

What will be an ideal response?

Economics