You have an absolute advantage whenever you
A) are better educated than someone else.
B) can produce something at a lower opportunity cost than others.
C) prefer to do one particular activity.
D) can produce more of something than others with the same resources.
D
You might also like to view...
Refer to Figure 9.2. A movement from point c to point b could be caused by a simultaneous ________ and ________
A) decrease in government spending; decrease in the price of oil B) increase in government spending; increase in the money supply C) increase in taxes; decrease in government spending D) decrease in taxes; increase in the price of oil
In South Asia and Sub-Saharan Africa, about what share of the labor force works in agriculture?
(a) One tenth. (b) One third. (c) One half. (d) Two thirds.
Suppose the U.S. economy is operating at potential output. A negative supply shock that is accommodated by an open market purchase by the Federal Reserve will cause ________ in real GDP in the long run and ________ in inflation in the long run, everything else held constant.
A) no change; an increase B) no change; a decrease C) an increase; an increase D) a decrease; a decrease
Suppose you invest $5,000 in a one-year Japanese bond that pays 1% interest. At the time of your purchase, 85 yen equals $1 while one year later, 80 yen equals $1. What will be the value of your investment in one year when measured in dollars?
What will be an ideal response?