A person has a comparative advantage in an activity whenever she
A. can perform the activity at a lower opportunity cost than another person can.
B. can do the activity in less time than anyone else.
C. has an absolute advantage in the activity.
D. can do everything better than anyone else.
Answer: A
You might also like to view...
When the overall price level in an economy increases, the interest rate in that economy tends to increase as well. This increase in the interest rate makes investing in domestic assets look more attractive than investing in assets in other countries, so the demand for foreign assets decreases. This is called the _____
a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect
If a firm had negative economic profits (i.e., economic losses), but did make an accounting profit, we may conclude that
A. explicit costs are negative. B. implicit costs are zero. C. implicit costs are positive. D. implicit costs are greater than explicit costs.
Which of the following types of unions did the CIO promote?
A) craft unions B) public sector unions C) industrial unions D) military unions
Impact of Exchange Rate Fluctuations