Chapter 2 quiz

comparative advantage refers to the ability to produce better quality goods than a competitor

False

according to the theory of comparative advantage, specialization and free trade will benefit

all trading parties, even when some are absolutely more efficient producers than others

the production possibility frontier is used to illustrate the concept of

opportunity costs

capital, as economists use the term,

refers to things that have already been produced that are in turn used to produce other goods and services

during the iraq war many of iraq's oil refineries were destroyed. this would best represented by a

shift of iraq's production possibility frontier toward the origin

if someone has a comparative advantage in growing pineapples,

they can grow pineapples at a lower opp. cost than other pineapple growers