Author Question: If firms are producing an output greater than planned expenditures, these firms will cut back on ... (Read 68 times)

penguins · **on:** Jun 30, 2018

If firms are producing an output greater than planned expenditures, these firms will cut back on production, which decreases GDP.

Indicate whether the statement is true or false

Question 2

According to this Application, workers in the EU were more productive than workers in Latvia in the 1990s, yet EU nations still purchased products from Latvia. This is because Latvia ________ in the production of the products it sold to EU nations.

A) used fewer resources B) had a higher opportunity cost
C) had an absolute advantage D) had a comparative advantage