Comparative advantage means
A) the ability to produce more of a product with the same amount of resources than any other producer.
B) the ability to produce a good or service at a lower opportunity cost than any other producer.
C) the ability to produce a good or service at a higher opportunity cost than any other producer.
D) compared to others you are better at producing a product.
Answer: B
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Perishable goods such as tomatoes and milk are never used as a form of money, primarily because they cannot function as:
a. a store of purchasing power. b. a means of payment. c. a standard of deferred payment. d. a medium of exchange. e. a unit of account.
Macroeconomists pay little attention to the composition of aggregate output
a. True b. False Indicate whether the statement is true or false
When you use a service like Facebook for free, it is likely that:
A. the provider is almost invariably a nonprofit company. B. you are both the customer and the product. C. you are not the customer; you are the product. D. the provider is almost never a nonprofit company.
Economic profit provides both human and physical capital decision makers with an incentive to
a. exploit workers. b. reject investments yielding an uncertain return. c. discover and develop beneficial and productive investment opportunities. d. do both b and c.