If Shawn can produce donuts at a lower opportunity cost than Sue, then
a. Shawn has a comparative advantage in the production of donuts.
b. Sue has a comparative advantage in the production of donuts.
c. Shawn should not produce donuts.
d. Shawn is capable of producing more donuts than Sue in a given amount of time.
a
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Assume two nations are involved in an arms race. They both assume that each faces two choices – sign disarmament accord or continue with military expansion and the building of more nuclear missiles
Explain using the prisoner's dilemma model why both of these nations will choose to escalate the arms race rather than choose bilateral disarmament. During the Cold War President Ronald Reagan was quoted as saying that the United States will "trust, but verify" when discussing nuclear nonproliferation agreements between the U.S. and the Soviet Union. How does this relate to your answer to the first part of this question?
Under the Soviet system of communism
A) managerial pay was determined by the extent to which managers could lower the per-unit costs of production. B) the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries. C) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world. D) technological progress was slow because managers had little incentive to develop new technologies.