Which of the following is the most likely to be a fixed factor of production at a farm?

A. The number of workers hired to harvest the crops
B. The amount of water used each day
C. The land on which the farm is located
D. The amount of fertilizer used each week

Answer: C

Economics

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If the U.S. enjoys an absolute advantage in agriculture compared to every other country in the world, then

A. agricultural production will take place only in the U.S. B. the U.S. necessarily has a comparative advantage in agriculture. C. the U.S. may or may not have a comparative advantage in agriculture. D. the U.S. necessarily does not have a comparative advantage in agriculture.

Economics