Author Question: Refer to Figure 5-1. At the efficient equilibrium, A) economic surplus is minimized. B) economic ... (Read 120 times)

mspears3 · **on:** Jun 29, 2018

Refer to Figure 5-1. At the efficient equilibrium,

A) economic surplus is minimized. B) economic surplus is maximized.
C) economic surplus is zero. D) economic surplus is negative.

Question 2

In the real world we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. All of the following are reasons for this except

A) some countries have more resources than other countries.
B) tastes for many traded goods are different in many countries because of globalization.
C) production of most goods involves increasing opportunity costs.
D) not all goods and services are traded internationally.