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Based on the classical view, a) Unemployment never occurs. b) Cyclical unemployment might occur temporarily. c) All goods produced are always purchased at an unchanging
Based on the classical view, a) Unemployment never occurs. b) Cyclical unemployment might occur temporarily. c) All goods produced are always purchased at an unchanging price. d) Persistent unemployment might be a problem. Question 22 (4 marks) It's not likely that a country will specialize completely in one good even if it has a lower opportunity cost because... a) Comparative advantage is not a workable concept in the world economy. b) Opportunity costs increase as more of a good is produced. c) The country would want to save some of the good for its own citizens. d) The country would end up inside its production possibilities curve. Question 23 (4 marks) Suppose the United States can produce 2,000 cars or 2,000 trucks. Japan can produce either 2,000 cars or 1,000 trucks. In terms of car production, we can conclude that... a) Japan has an absolute advantage. b) The United States has an absolute advantage. c) The United States has a comparative advantage. d) Japan has a comparative advantage
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