Which of the following is correct about comparative advantage?
A) Some countries will have a comparative advantage in everything.
B) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country.
C) Having a comparative advantage without an absolute advantage is impossible.
D) A comparative advantage in a good means that the country can produce more of the good than any other country.
E) None of the above answers is correct.
B
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Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?
A) The supply increases so that the supply curve shifts rightward. B) The supply decreases so that the supply curve shifts leftward. C) The quantity supplied increases, but there is no shift in the supply curve. D) The quantity supplied decreases, but there is no shift in the supply curve. E) The quantity supplied decreases, and the supply curve shifts leftward.
Critics of Douglass North's "market opportunity response" model suggest that surges in land sales in the Old Northwest in the 1810s, 1830s and 1850s were due to
a. improved transportation between the Old Northwest and the Northeast. b. rising prices for hogs. c. a reduction of British interference. d. pervasive land speculation.