Comparative advantage means the ability to produce a good or service
A) at a lower selling price than any other producer.
B) at a lower opportunity cost than any other producer.
C) of a higher quality than any other producer.
D) at a higher profit level than any other producer.
Answer: B
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In the Classical model, aggregate demand determines the
A) level of real output. B) the level of employment. C) the price level. D) the velocity of money.
The Federal Reserve
a. was created in 1836. b. serves as a lender of last resort. c. was created to facilitate the federal government's collection of taxes as well as its expenditures. d. All of the above are correct.
Refer to the above graph. In the short run, this monopolistically competitive firm will set price at:
A. $55 and produce 45 units of output B. $65 and produce 35 units of output C. $50 and produce 35 units of output D. $52 and produce 50 units of output
Refer to the above figure. The rational expectations hypothesis implies that an anticipated increase in aggregate demand from AD1 to AD2 will
A. will shift the aggregate supply (AS) curve to the right. B. move the economy from a to b. C. move the economy from c to b. D. move the economy from a to c.