Question

- Your opportunity cost of a vacation to Disney world is the price of the ticket. (False/True)

- The circular-flow diagram illustrates two markets - stock market and market for goods and services. (False/True)

- Congress ought to pass a law on global warming is a normative statement. (False/True)

- The concept of absolute advantage determines whether a country will engage in international trade or not. (False/True)

- Italy has a higher opportunity cost in producing shoes as compared to the US. That's why Italy exports shoes to the US. (False/True)

Answer 1

a) False, the opportunity cost of going to the disney world will be things that we have left and not done while going to disney world.

b) Flase. it can be proved by the data and stats that makes it positive statement.

c) False, its the comparative advantage that will determine of the nation will engage in international trade or not.

d) False, to export shoes they should have a lower opportunity cost in shoes, if they have a higher opportunity cost then they will not be exporting it.