Multiple Choice
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Multiple choice
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1) Assume that in Canada the opportunity cost of producing 2 television sets is 3 bushels of wheat. Assume that in the U.S. the opportunity cost of producing 2 bushels of wheat is 3 television sets. If these two countries specialize according to comparative advantage and then trade with one another, then __________.
c. the U.S. will import wheat and export televisions
Opportunity cost of 1 bushel of wheat in US is 1.5 TV and that in Canada is 0.67 TV, so Canada should produce wheat. Reverse is the case for TV and US should produce TV.
2) In which of the following ways is a monopolist different from a perfect ...
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