The idea behind comparative advantage reflects the possibility that one party
a. may be able to produce something relatively more efficiently than another.
b. may be able to produce something at a lower opportunity cost than another.
c. may be able to produce something more cheaply than another
d. all of the above
d
You might also like to view...
The primary factor that caused most economists to lose their faith in the classical approach to macroeconomic policy was
A) the high levels of unemployment that occurred during the Great Depression. B) the presence of both high unemployment and high inflation during the 1970s. C) the theoretical proof that classical ideas were invalid. D) the evidence that classical ideas were useful during economic booms, but not during economic recessions.
According to Prisoners'' Dilemma
a. Both parties do not confess b. It is difficult to maintain cooperation among prisoners c. Both a and b d. None of the above
Which of the following policies is supported by the idea that producers and workers will demand higher prices and wages when they see the money supply expanding?
A. Discretionary policy B. Fixed rules C. The Fed's eclecticism D. Fiscal policy
If the economy were producing at its potential output, then the unemployment rate would be less than the target rate of unemployment.
Answer the following statement true (T) or false (F)