Multiple Choice
Suppose John and Joe each have different production possibility frontiers; John specializes in cloth and Joe specializes in corn.John's island unexpectedly has exceptionally good weather, and suddenly he is twice as productive in the production of both corn and cloth.Select the best statement.
A) As a result, John will have an absolute advantage in both corn and cloth.
B) There will be a change to the goods in which John and Joe specialize, because John's opportunity cost of corn has decreased.
C) As a result, it is possible that John and Joe will switch the goods in which they specialize.
D) There will be no change to the goods in which John and Joe specialize, because John's comparative advantage has not changed.
E) This is an example of unemployed resources becoming employed.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Use the figure below to answer the
Q34: Use the table below to answer the
Q35: Which one of the following would likely
Q36: Use the figure below to answer the
Q37: A technological improvement is represented by<br>A)a movement
Q39: Use the table below to answer the
Q40: The existence of increasing opportunity cost<br>A)explains why
Q41: Use the information below to answer the
Q42: Microsoft's marginal cost of the 100th copy
Q43: Use the figure below to answer the