The numerical value of the slope of a line depends in part on the units of measurement used

A reason a nation faces diminishing returns along a production function is because

A) unemployment always exists. B) potential GDP is fixed. C) the quantity of physical capital is fixed. D) full employment is not possible. E) the wage rate is fixed while moving along the production function.

Amy can produce either 5000 pounds of cheese or 20 cars per year. Mike can produce either 5000 pounds of cheese or 10 cars per year. By the principle of comparative advantage, Mike should specialize in producing

A. cars. B. neither cheese nor cars. C. both cheese and cars. D. cheese.