Comparative advantage implies that you
A) can produce more units of a good or service than another.
B) can produce a good or service at a lower opportunity cost.
C) can produce goods with more capital resources.
D) can produce goods with more human resources.
Answer: B
You might also like to view...
Consumer surplus from a given purchase is the difference between what one was willing to pay for that purchase and what was actually paid
What will be an ideal response?
Efficiency wages create a
a. shortage of labor and so reduce unemployment. b. shortage of labor and so raise unemployment. c. surplus of labor and so reduce unemployment. d. surplus of labor and so raise unemployment.
Suppose that just by doubling the amount of output that it produces each year, a firm's per-unit production costs fall by 30 percent. This is an example of:
What will be an ideal response?
Refer to the data. If the market price for this firm's product is $87, it will produce:
A. 9 units at an economic profit of zero.
B. 6 units at a loss of $90.
C. 9 units at an economic profit of $281.97.
D. 8 units at an economic profit of $130.72.