David Ricardo discovered that two countries can still gain by trading even if one country is more efficient in the production of every commodity. Ricardo's discovery is called the law of
a. comparative advantage.
b. absolute advantage.
c. compensating balances.
d. increasing returns.
a
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The negative slope of a production possibilities frontier is a graphic representation of opportunity cost.
Answer the following statement true (T) or false (F)
The phrase "decreasing marginal benefit" means that
A) the more you consume of the product, the less total benefit you derive. B) the marginal cost will be increasing as you consume more of a good. C) each additional unit of a good you consume gives you less additional benefit than the previous unit. D) Both answers A and B are correct. E) Both answers A and C are correct.
If a perfectly competitive seller is maximizing profit and is making zero economic profit, which of the following will this seller do?
A) go to work in the next-best earning opportunity B) shut down, with a loss equal to total fixed cost C) continue at the current output, making zero economic profit D) increase production in order to make an economic profit E) remain open but decrease production in order to make an economic profit
The labor movement has been largely an economic movement, not a political phenomenon
Indicate whether the statement is true or false