Refer to Scenario 9.1. If Sheb places ________ sheep on the commons, Monty is better off placing ________ on the commons
A) 4; 4
B) 5; 5
C) 5; 4
D) Both A and C are correct.
B
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If Norwegian workers are more productive than Albanian workers, then trade between Norway and Albania
A) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want. B) cannot take place until Albanian workers become more productive. C) can take place only if Albania has an absolute advantage in producing a good or service Norwegian buyers want. D) cannot take place because Norwegian goods and services will be less expensive than Albanian goods and services.
If total spending rises from one year to the next, then the economy must be producing a larger output of goods and services
a. True b. False Indicate whether the statement is true or false