The law of comparative advantage indicates that if a group of individuals wants to maximize their joint output, then each good should be supplied by
A) the person with the most advanced technical knowledge.
B) the person that can accomplish the task most rapidly.
C) the person with the lowest wage rate.
D) the low opportunity cost producer.
D) the low opportunity cost producer.
You might also like to view...
When people are educated, they become:
A. more productive to society, because they have more skills to apply to a job. B. less productive to society, because they stop working while in school. C. less productive to society, because they require higher pay per hour. D. more productive to society, because they are paid more.
In a closed economy, income equals:
A. consumption plus net exports. B. consumption plus savings. C. consumption minus savings. D. savings plus investment.
The principal-agent problem arises when
A. the principal and the agent have different objectives. B. the principal cannot enforce the contract with the agent or finds it too costly to monitor the agent. C. the principal cannot decide whether the firm should seek to maximize the expected future profits of the firm or maximize the price for which the firm can be sold. D. both a and b
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, the price of the cable TV service usually:
A. increases. B. decreases. C. initially increases, then decreases. D. is unaffected.