Author Question: Specialization and trade do not allow individuals, firms, or even nations to acquire goods that lie ... (Read 80 times)

jazziefee · **on:** Jun 30, 2018

Specialization and trade do not allow individuals, firms, or even nations to acquire goods that lie beyond their production capabilities.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If race-car driving is dangerous, why would any rational person choose to be a race-car driver?

DHRUVSHAH · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

False

Answer to Question 2

A rational person might choose to drive race cars if, after assessing the potential dangers, he or she believes the expected marginal benefit from racing outweighs the expected marginal cost.