The law of comparative advantage indicates that if a group of individuals wants to maximize their joint output, then each good should be supplied by
What will be an ideal response?
the low opportunity cost producer.
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Juanita has just started a business and is using her personal car to deliver goods. The use of her car is an example of
A) an explicit cost to the business. B) an implicit cost to the business. C) financial capital. D) interest.
The market-day supply curve is
a. horizontal, reflecting the fact that the quantity supplied can increase infinitely b. vertical, reflecting the fact that the quantity supplied cannot change c. increasing, reflecting the positive relationship between price and quantity d. decreasing, reflecting the inverse relationship between price and quantity e. flatter than the market demand curve
The optimal combination of goods for a consumer to purchase is shown by
A. any intersection of the indifference curve and the budget line. B. the point where the budget line touches the vertical axis. C. a point of tangency between the budget line and the indifference curve. D. the point at which the indifference curve parallels the horizontal axis. E. the intersection of two indifference curves.
Refer to Table 10-2. Using the table above, what is the approximate growth rate of real GDP from 2015 to 2016?
A) -2% B) -1% C) 1% D) 2%