A person has a comparative advantage in producing a good if:
a. that person can produce the good at a lower absolute cost than anyone else.
b. that person can produce the good at a lower opportunity cost than anyone else.
c. that person has a perfectly elastic demand curve for her good.
d. that person spends less on advertizements.
e. that person can produce the good at a higher opportunity cost than anyone else.
b
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In the Solow growth model, an increase in the marginal propensity to consume shifts the ________, with the implied change in the capital stock resulting in a ________ standard of living in the long run
A) steady-state investment line upward, higher B) steady-state investment line downward, higher C) national saving line upward, lower D) national saving line upward, higher E) national saving line downward, lower
Suppose the nominal exchange rate — Canadian dollar per Brazilian real — is constant
If the price level in Brazil rises by four percent, while the price level in Canada rises by eight percent, then the real exchange rate — Brazilian goods for Canadian goods — has ________ by ________ percent. A) declined; one-half B) risen; one-half C) risen; two D) declined; four
Using the aggregate expenditure-output model, assume the aggregate expenditures (AE) line is below the 45-degree line at full-employment GDP. This vertical distance is called a(n):
a. inflationary gap. b. recessionary gap. c. negative GDP gap. d. marginal propensity to consume gap.
If the president of Chile commented that "the crime rate in Chile is currently too high," this would be an example of a normative statement
a. True b. False