If you can earn $30,000 a year teaching, $20,000 a year making phone apps, $35,000 a year driving a cab, and $40,000 a year as an actor or actress. You have a comparative advantage in
A. making phone apps
B. one of them but we need more information to know which.
C. being an actor or actress.
D. teaching.
Answer: C
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The official decision in the U.S. as to whether and when a slowdown in the rate of economic growth has become a recession is made by the
A) Bureau of Economic Analysis in the Department of Commerce. B) Bureau of Labor Statistics. C) Federal Reserve Board of Governors. D) National Bureau of Economic Research, a private research organization.
Which of the following is true of marginal revenue for a monopolist that charges a single price?
a. P = MR because there are no close substitutes for the monopolist's product. b. P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit. c. P < MR because the monopolist must decrease price on all units sold in order to sell an additional unit. d. AR = MR because there are no close substitutes for the monopolist's product. e. P = MR only at the profit-maximizing quantity.
If the interest rate rises, an individual could choose to
a. increase consumption when young. b. increase consumption when old. c. decrease consumption when young. d. Any of the above could be correct.
A slump in one industry could increase the relative attractiveness of another industry:
A. increasing the quantity of labor demanded in the latter. B. increasing the quantity of labor supplied in the latter. C. decreasing the quantity of labor supplied in the latter. D. decreasing the quantity of labor demanded in the latter.