Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity?
a. One individual's production possibilities frontier is steeper than the other individual's production possibilities frontier.
b. One individual is faster at both activities than the other individual.
c. One individual's opportunity costs are the same as the other individual's opportunity costs.
d. None of the above is correct; one of the two individuals always will have a comparative advantage in at least one of the two activities.
c
You might also like to view...
When the nominal price of a good increases over time, the real cost of buying the good
A) must increase. B) decreases because income also increases over time. C) does not change because income also increases over time. D) might increase, decrease, or stay the same depending on how much the CPI changed. E) might increase, decrease, or stay the same depending on how much income changed.
Balanced growth paths can differ across countries due to differences in saving rates, labor force growth rates, and the rates of labor-augmenting technological change
These differences are likely to result in differences in ________, a common measure of the standard of living. A) happiness B) life expectancy C) income distribution D) real GDP per capita
The federal income tax began in the United States with the
A. Morrill Act of 1862. B. addition of the Bill of Rights to the Constitution in 1791. C. passage of the 16th Amendment to the Constitution in 1913. D. New Deal legislation of the 1930s.
What is Consumer Price Index (CPI) ?
A. CPI is a tool used to measure the average price level of all final goods and services produced. B. CPI is the measurement of the price of a fixed basket of goods and services relative to the price of that same basket in some base year. C. CPI is the measurement of the amount of money that it takes to produce a fixed level of utility. D. None of the above.