Comparative advantage refers to the ability to produce at a lower opportunity cost than a competitor.
Answer the following statement true (T) or false (F)
True
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For the capital stock of the economy to remain constant over time the amount of investment:
A) must exceed the depreciated value of capital stock. B) must be less than the depreciated value of capital stock. C) must be equal to the depreciated value of capital stock times the savings rate of the economy. D) must be equal to the depreciated value of capital stock.
According to recent research by Golden and Katz, __________ led the way in establishing high schools in the 1920s
a. the urban centers of the North b. the mid-Atlantic states c. California d. the Middle West, including Iowa and Nebraska
We would expect the interest rate on Bond A to be lower than the interest rate on Bond B if the two bonds have identical characteristics except that
a. the credit risk associated with Bond A is lower than the credit risk associated with Bond B. b. Bond A was issued by the Apple corporation and Bond B was issued by the city of Houston. c. Bond A has a term of 20 years and Bond B has a term of 2 years. d. All of the above are correct.
The manager of Slick Lens, a sunglasses manufacturer, notices that the cost to purchase lenses for their sunglasses in the spot market has increased. As a result of the change, which of the following is true?
A) The manager has more of an incentive to integrate backward. B) The manager has less of an incentive to integrate backward. C) The manager has more of an incentive to integrate forward. D) The manager has less of an incentive to integrate forward.