The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good,
a. has a low opportunity cost of producing that good, relative to the opportunity costs of other producers.
b. has a comparative advantage in the production of that good.
c. has an absolute advantage in the production of that good.
d. should be the only producer of that good.
c
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If the economy is in long run equilibrium and aggregate demand increases, then in the short run
A) nothing happens because the economy is in long run equilibrium. B) the price level rises and real GDP does not change. C) real GDP increases and the price level does not change. D) the price level rises and real GDP increases.
What does elasticity measure?
What will be an ideal response?
The value of commodity money: a. fluctuates because its value is compared with the price of the commodity in international markets. b. fluctuates because its base commodity market value is flexible
c. remains stable because a particular commodity always yields the same level of utility. d. remains constant because the production of the commodity used as money is restricted to limited hands.
Capital goods are
A. publicly provided. B. excluded from GDP. C. long-lived goods used for producing other goods and services. D. the end products of production.