A person has a comparative advantage in producing a good if that person:
a. can produce the good at a lower absolute cost than anyone else.
b. can produce the good at a lower opportunity cost than anyone else.
c. can do a better job than anyone else.
d. spends more money in out-of-pocket expenses than anyone else.
e. can produce the good at a higher opportunity cost than anyone else.
b
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Refer to Figure 15-2. The firm's profit-maximizing price is
A) P1. B) P2. C) P3. D) P4.
Which of the following is not an automatic stabilizer?
a. Forward-looking behavior b. Interest rates c. Imports d. Transfer payments e. Consumption spending
If you are in the business of selling chicken and the price of chicken and the price of beef both were to drop dramatically, what should you do with your inventory level of chicken?
A. Increase the inventory. B. Keep it the same. C. Get into the beef business. D. Decrease the inventory.
Suppose a country's net exports equal 0. If the volume of exports increases without any change in the volume of imports, the country will experience a ________
A) budget surplus B) budget deficit C) trade deficit D) trade surplus