Only those products in which a country has an absolute advantage will be competitive in world markets.

If the elasticity of substitution of a production function is equal to zero, then this production function is a

A) linear production function B) fixed proportion production function C) Cobb-Douglas production function D) None of above.

An Article in the Wall Street Journal observes: "For 2008, productivity grew and astounding 2.8% from 2007 even as the economy suffered through its worst recession in decades." How is it possible for labor productivity - output per hour worked-to increase if output-real GDP-is falling?

A. The "new economy" is based on information technology B. Faster and less expensive computers have made communication and data processing faster and easier C. Laptop computers and wireless Internet allow people to work while they are away from their jobs D. Business record-keeping is now faster and more accurate due to computer technology. E. All of the above