When country A can produce a good more efficiently than country B, we say country A has a _____ in that good.

a.Definite absolute advantage and comparative advantage.

b.Possible absolute advantage and comparative advantage.

c.Definite comparative advantage and a possible absolute advantage.

d.Definite absolute advantage and a possible comparative advantage.

A point beyond the production possibilities frontier is...

a.Undesirable.

b.Unattainable.

c.Unappealing.

d.Inefficient.

Strategic interdependence is a defining characteristic of...

a.Monopolistic competition.

b.Oligopoly.

c.Monopoly.

d.Perfect competition.

It is assumed that, when capital and labour are the only two inputs, then...

a.Neither capital nor labour are fixed in the short run.

b.Capital is fixed in the short run but labour is not.

c.Both capital and labour are fixed in the short run.

d.Labour is fixed in the short run but capital is not.