When a producer has a comparative advantage in producing a good, it means the producer:
A. has the ability to produce the good at a lower opportunity cost than others.
B. is efficient in production.
C. has no reason to trade with others.
D. can produce more of that good than others with the same number of workers.
Answer: A
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The figure above shows Sam's budget line. Which of the following combinations of gasoline and coffee are not available to Sam?
A) 40 gallons of gasoline and 0 pounds of coffee B) 32 gallons of gasoline and 4 pounds of coffee C) 8 gallons of gasoline and 8 pounds of coffee D) 16 gallons of gasoline and 16 pounds of coffee
In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities for gain is known as
A) rational self-interest. B) altruism. C) sufficiency. D) empiricism.
The "law of demand" in economic theory asserts that
a. demand generates a supply sufficient to satisfy the demand. b. nothing will be produced unless there is a demand for it. c. people will purchase less of a good when its price rises. d. wants are indefinitely expansible and can never be fully satisfied. e. whatever people want will eventually be supplied.
Which of the following is true regarding a demand curve?
i. The demand curve is also the marginal benefit curve. ii. The demand curve shows the dollars' worth of other goods that people are willing to forgo to consume another unit of the good. iii. The demand curve shows the maximum price that people are willing to pay for another unit of a good. A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) i only