Economics ECON S - 1920 Chapter Notes - Chapter Quizzes: Opportunity Cost, 3E, Absolute Advantage
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International economics quiz answers quiz 1 (1) in economic theory, the opportunity cost of a choice is the value of the best alternative forgone (not chosen) when there are limited resources. The graph below shows the cost curve of a consumer"s choice between two goods (brezels and cheeseburgers). Mark the correct statement(s): since both countries differ in productivity, there are possible gains from trade. Workers of country b will specialise in wine production. Country a must have an absolute advantage in cheese production. Country a has a comparative advantage in cheese production. (3) mark the correct statement(s). The ricardian model assumes: (in kursiv stehen meine pers nlichen antworten zu den falschen l sungen) labour and capital are the only factor of production. Only labor due to differences in technology labor productivity in within a country is not constant. Labor productivity is constant in the absence of trade, a doubling of a countries" workforce does not affect relative prices.
