A person has a comparative advantage in producing a particular good if that person
A) has higher productivity in producing it than anyone else has.
B) can produce it at lower opportunity cost than anyone else can.
C) has less desire to consume that good than anyone else has.
D) has more human capital related to that good than anyone else has.
B
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Which of the following is not a characteristic of a perfectly competitive market
a. buyers and sellers are well informed about the market b. standardized product c. many buyers and few sellers d. easy exit out of the industry e. easy entry into the industry
The money supply is best described as being:
A. determined by the amount of reserves. B. fixed, to avoid inflation. C. endogenously determined by the monetary system. D. determined by the size of the money multiplier.
The budget of an unconstrained government is similar to a common pool resource, and this will lead to
A) lower interest rates and spending levels consistent with economic efficiency. B) excessive spending and budget deficits. C) lower taxes and a deficient level of spending. D) a deficient level of spending and budget surpluses.
The measure of the part of disposable income that is not consumed is
A. Savings. B. Depreciation. C. GDP. D. Net investment.