Comparative advantage is defined as
A) the ability to produce more output of one good relative to another good than another country can.
B) the ability to produce more output from given inputs of resources than others can.
C) the ability to use more input of resources than others can.
D) having a lower average fixed cost in the production of a good than does someone else.
Answer: A
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The unemployment rate for the economy as a whole is a(n)
a. normative value judgment b. positive value judgment c. microeconomic statistic d. macroeconomic statistic e. example of an economic model
Contestable markets improve the performance of imperfect markets with
a. government regulations. b. the threat of entry. c. advertising. d. tacit collusion.
Producers of computer software are plagued with the problem of “pirating,” that is, many people copy software legally purchased by others. The industry estimates that for each legal copy of a program, there are two pirated copies in use. The industry wants strict laws for the enforcement of its “intellectual property rights,” but enforcement is obviously very difficult. Economists call this problem
A. depletability. B. externality. C. durability. D. nonexcludability.
A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called:
A. real GDP. B. current GDP. C. nominal GDP. D. base GDP.