Which of the following statements is true?
A. Comparative advantage requires absolute advantage.
B. Absolute advantage implies comparative advantage.
C. Comparative advantage does not require absolute advantage.
D. Absolute advantage requires comparative advantage.
Answer: C
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Limited liability is a benefit to
A) sole proprietorships. B) partnerships. C) corporations. D) All of the above.
A firm employs 100 workers at a wage rate of $10 per hour, and 50 units of capital at a rate of $21 per hour. The marginal product of labor is 3, and the marginal product of capital is 5. The firm
A) is producing its current output level at the minimum cost. B) could reduce the cost of producing its current output level by employing more capital and less labor. C) could reduce the cost of producing its current output level by employing more labor and less capital. D) could increase its output at no extra cost by employing more capital and less labor. E) Both B and D are true.
If the long-run Phillips curve is vertical, then any government policy designed to lower
a. unemployment will not change the unemployment rate but it will increase the inflation rate b. unemployment will lower it but also will lower the inflation rate c. inflation will cause employment to rise d. unemployment will not lower it and will end up raising the rate of inflation e. unemployment will be effective but it will also cause the inflation rate to rise
The CPI was 172 in 2007, and the CPI was 46.5 in 1982 . If your parents put aside $1,000 for you in 1982, then how much would you have needed in 2007 in order to buy what you could have bought with the $1,000 in 1982?
a. $270.35 b. $1,255.00 c. $2,698.92 d. $3,698.92