The text calls the type of comparative advantage that is not easily changed, such as climate:
A. inherent comparative advantage.
B. stable comparative advantage.
C. permanent comparative advantage.
D. equilibrium comparative advantage.
Answer: A
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Between two indifference curves, the one on the right indicates:
A) the same level of utility as the one on the left. B) the same bundle of goods as the one on the left. C) a higher level of utility than the one on the left. D) a lower level of consumer income than the one on the left.
Refer to Table 9-7. Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand
Handbags Jackets Cambodia Thailand
In a period of full employment, if M increases and V remains constant, the most likely result is
a. a decrease in the value of Q. b. an increase in the value of Q. c. a decrease in the value of P. d. an increase in the value of P.
Which of the following is true? a. The private market provides too much of goods that generate external benefits
b. In the case of external benefits, if we could add the benefits that are derived by non-paying consumers, the supply curve would shift to the right, increasing output. c. In the case of external benefits, a tax equal to external benefits would result in an efficient level of output. d. In the case of public goods, when people act as free-riders, some goods having benefits greater than costs will not be produced.