Comparative advantage exists when a person or a country can produce a good or service at a lower _____ than others.
A. fixed cost
B. variable cost
C. opportunity cost
D. total cost
Answer: C. opportunity cost
You might also like to view...
High rates of saving today contribute to ________ in the future.
A. more capital gains B. a higher standard of living C. more unemployment D. higher tax rates
If the disposable income decreases, then
A) the demand for loanable funds increases. B) the quantity of loanable funds demanded increases. C) the supply of loanable funds increases. D) the quantity of loanable funds supplied decreases. E) the supply of loanable funds decreases.
The real exchange rate is defined to be the:
A. value of goods in one nation relative to the value the same set of goods in another country. B. rate at which firms in different nations would be willing to exchange goods. C. rate people exchange goods and services in a domestic market. D. value of goods in one nation relative to the value a similar set of goods in another country.
Because incentive contracts result in more risk placed on the part of agents
a. the average level of compensation typically falls b. the average level of compensation typically rises c. compensation is unaffected d. employers want employees to insure against wild compensation swings