Author Question: When the economy is using all of its factors of production, the aggregate supply curve is vertical. ... (Read 22 times)

lilldybug07 · **on:** Jun 30, 2018

When the economy is using all of its factors of production, the aggregate supply curve is vertical.

Indicate whether the statement is true or false

Question 2

A country possesses a comparative advantage in the production of a product if

A) the opportunity cost, in terms of the amount of other products that it gives up to produce this product, is lower than it is for its trading partners.
B) it possesses an absolute advantage in the production of this good compared to its trading partners.
C) it is able to produce less of this good per worker than its trading partners.
D) it can produce more of this good per hour than its trading partners.