The text refers to the type of comparative advantage that can be gained or lost because of changes in skills of workers or types of capital as:
A. temporary comparative advantage.
B. transferable comparative advantage.
C. non-equilibrium comparative advantage.
D. unstable comparative advantage.
Answer: B
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In the long run, a fall in the input price causes less of an increase in factor demand
A) if the increase of product supply affected price. B) if the market price will decrease too. C) if the market price remain constant. D) if the factor demand is more elastic.
Ways to ration goods include
A) first-come, first-served. B) political power. C) prices. D) all of the above.
In a perfectly competitive labor market, the wage rate paid by the individual firm is
A) the equilibrium market wage rate. B) dependent on the demand for the product. C) below the equilibrium market wage rate. D) a function of the tax system.
A barter economy is one in which:
A. money serves as a medium of exchange. B. only precious metals are accepted as money. C. goods are traded directly for other goods. D. paper money is backed by gold.