A country that has a lower opportunity cost of producing a good:
a. has a comparative advantage.
b. can produce the good using fewer resources than another country.
c. requires fewer labor hours to produce the good.
d. all of these.
a
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Which of the following increases money demand?
A) Disruptions in the banking system. B) The introduction of online banking. C) The wider availability of ATMs. D) The introduction of deposit insurance.
After nearly tripling the money supply after the housing market crash and subsequent financial crisis, inflation:
A. began to spiral out of control, due to the newfound solvency of banks, increasing lending and thus the money multiplier effect. B. continued to fall, due to the lack of consumer confidence in the market, decreasing the marginal propensity to consume. C. stayed relatively low, due to the lack of lending by banks, reducing the effectiveness of the money multiplier. D. has slowly increased, due to restored consumer confidence in the market, increasing the marginal propensity to consume.
Rocket Energy Drink Company buys sugar to produce energy drinks. At the end of a quarter both its inventory of sugar and its inventory of energy drinks has increased. Investment for the quarter will include
a. both the increased inventory of sugar and the increased inventory of energy drinks. b. the increased inventory of sugar, but not the increased inventory of energy drinks. c. the increased inventory of energy drinks, but not the increased inventory of sugar. d. neither the increased inventory of sugar nor the increased inventory of energy drinks.
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