Comparative advantage is based on
a. capital costs
b. labor costs
c. opportunity costs
d. dollar price
e. both labor and capital costs
c. opportunity costs
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Political freedom can sometimes moderately reduce economic growth because
A) campaign contributions rob the economy of investment. B) special interest groups may gain at the expense of the overall economy. C) most jobs are in unions that are politically connected. D) none of the above.
A supply curve shows the marginal
A) benefit consumers receive from consuming a good. B) profit businesses earn from selling a good. C) cost of producing the good. D) price paid for a good. E) benefit sellers receive from selling a good.
The own price elasticity of Anne's apple pies is 5 . If the aggregate market for apple pies has an own price elasticity of 1.25, Anne's apple pies has an approximate market share of
a. 6.25% b. 25% c. 10% d. 20%
When does equilibrium occur?
a. when quantity supplied equals quantity demanded b. when demand equals supply c. when consumers buy as much of the good as they want d. when suppliers sell as much of the good as they want