ECO 561 Final Exam 2017

1. In the theory of comparative advantage, a good should be produced in that nation where A. the production possibilities line lies further to the right than the trading possibilities line. B. its cost is least in terms of alternative goods that might otherwise be produced. C. its absolute cost in terms of real resources used is least. D. its absolute money cost of production is least. 2. A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly ele...

1. In the theory of comparative advantage, a good should be produced in that nation where A. the production possibilities line lies further to the right than the trading possibilities line. B. its cost is least in terms of alternative goods that might otherwise be produced. C. its absolute cost in terms of real resources used is least. D. its absolute money cost of production is least. 2. A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly ele...