The nation of Cropitia has a comparative advantage over Bonovia in producing ham if
A. Cropitia can produce more than 320 pounds of cheese per month.
B. Cropitia's opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese.
C. Cropitia's opportunity cost of producing a pound of ham is greater than 0.8 pounds of cheese.
D. Cropitia can produce more than 400 pounds of ham per month
Ans: B. Cropitia's opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese.
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Consider two individuals, Kevin and Harris, who discount delayed utilities with a weight of 1/2 and 3/4, respectively
a) Who between the two individuals gives more weight to things that happen in the future? b) If consuming ice cream gives both Kevin and Harris benefits worth 8 utils instantly and has delayed costs of 15 utils, then comment on whether both individuals will want to consume ice cream. c) If the nearby ice cream parlor is closed for a week, will Kevin and Harris prefer to eat ice cream after a week, given that they have to decide today?
________ occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods
A) Dumping B) Comparative advantage C) Learning-by-doing D) A tariff
Which of the following is an example of a compensating differential?
a. Two workers with different undergraduate majors earn different salaries. b. Two workers with different years of experience earn different salaries. c. Two workers whose jobs entail different risks earn different salaries. d. Two workers with different levels of personal attractiveness earn different salaries.
A negative side of long-term contracts is:
A. high transaction costs. B. the continual need to renegotiate the contract. C. a loss of flexibility. D. None of the statements is correct.