The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n):
A. market advantage.
B. comparative advantage.
C. absolute advantage.
D. specialization advantage.
Answer: B
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In the figure above, if the quantity is restricted to 2, then the deadweight loss in this market equals
A) b + g. B) c + d. C) e + k. D) h + i.
According to Baumol and Blinder, recognition of the usefulness of markets
a. labels a person as an apologist (defender) of capital. b. extends to some socialist countries, for example, China. c. should make totally free markets good for any society. d. makes one a radical.
For a monopolist, marginal revenue is
a. equal to price, as it is for a perfectly competitive firm. b. less than price, as it is for a perfectly competitive firm. c. equal to price, whereas marginal revenue is less than price for a perfectly competitive firm. d. less than price, whereas marginal revenue is equal to price for a perfectly competitive firm.
When reality show participants travel through foreign countries, they are generating a
A. Supply of U.S. dollars and a demand for a foreign currency. B. Demand for U.S. dollars and a supply of a foreign currency. C. Supply of U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.