Industrial policy involves governments using taxes, subsidies, and regulations to nurture the development of specific industries

Identify the four factors of production, and tell what type of income is earned by each factor

What will be an ideal response?

Refer to Figure 2-8. The linear production possibilities frontier in the figure indicates that

A) Vidalia has a comparative disadvantage in the production of roses. B) it is progressively more expensive to produce orchids. C) Vidalia has a comparative advantage in the production of orchids. D) the tradeoff between roses and orchids is constant.