An individual has a comparative advantage in production if that individual:
a. can produce at the highest opportunity cost.
b. is more self-sufficient than others
c. can produce at the lowest opportunity cost.
d. all of the above
c
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Explain and demonstrate graphically the situation of an overvalued exchange rate in a fixed exchange rate system. What alternative policies are available to eliminate the overvaluation of the exchange rate?
What will be an ideal response?
Other things equal, a decrease in the price level will
A) shift the AS curve to the left. B) shift the AS curve to the right. C) cause a movement up the AS curve. D) cause a movement down the AS curve.
What is meant by the natural rate of unemployment?
In contrast to a perfectly competitive firm, a monopolist operates in the long run
A. at a price higher than marginal cost. B. with a profit equal to zero. C. at an efficient level of output. D. at the minimum point on its average total cost curve.