Which of the following statements is true?
A) When a nation has an absolute advantage over other nations in producing all the goods and services, it cannot gain from trade.
B) Absolute advantage relates to production per units of inputs and comparative advantage involves the opportunity cost of producing different goods.
C) When a nation has an absolute disadvantage over other nations in producing a good, it cannot gain from trade.
D) Absolute advantage involves the opportunity cost of producing different goods and comparative advantage relates to production per units of inputs.
B
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Refer to Scenario 12.2. In this game, there is (are)
A) 4 Nash equilibria. B) 2 Nash equilibria. C) 1 Nash equilibrium. D) zero Nash equilibria.
Ceteris paribus, the wages of clerks would increase if there was a decrease in: a. the period of training required for clerk jobs
b. non-monetary "fringe" benefits received by clerks. c. the marginal revenue product of clerks. d. the cost of medical insurance benefits paid to clerks.