Suppose that the opportunity cost of producing goods differs between two nations. We can correctly state that
A) the two nations should not specialize in the production of goods.
B) specialization can lead to a decrease in the production of all goods.
C) specialization can lead to an increase in the production of all goods.
D) neither country has a comparative advantage in the production of any good.
Answer: C
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According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?
a. Always. b. When the supply of corn is fixed. c. When nonprice determinants, like income and the number of buyers, are unchanged. d. When there are no shortages or surpluses of corn.
To say that coins are "token money" means that:
A. their face value is less than their intrinsic value. B. their face value is greater than their intrinsic value. C. their face value is equal to their intrinsic value. D. they are not legal tender.