The idea of comparative advantage implies that people or countries
A) should specialize in the production of goods.
B) can gain from trading.
C) can consume at a point outside their production possibilities frontier.
D) all of the above.
D
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The success of Walt Disney's animated film The Lion King in 1994 increased production of animated films, increasing the demand for animators much faster than the supply of animators was increasing
As a result, in the market for animators, the equilibrium wage fell and the equilibrium quantity increased. Indicate whether the statement is true or false
If something is a medium of exchange, then it:
a. serves as a yardstick for measuring the value of other goods. b. is a means of holding wealth for the future. c. has an absolute value in gold. d. is widely accepted as payment for purchases.