Having an absolute advantage in the production of a good implies that a country
a. should specialize in the production of the good
b. is able to produce the good with fewer resources than another country
c. should not specialize in the production of the good
d. also has the comparative advantage in the production of the good
e. cannot have an absolute advantage in the production of the good
B
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If indifference curves are concave to the origin, which assumption on preferences is violated?
A) Diminishing marginal rates of substitution B) Transitivity of preferences C) More is preferred to less D) Completeness
The key determinant of the standard of living in a country is
a. the amount of goods and services produced from each hour of a worker's time. b. the total amount of goods and services produced within the country. c. the total amount of its physical capital. d. its growth rate of real GDP.