Automobiles and many other products are differentiated. As a result
A) consumers of automobiles have difficulty deciding what type of imported automobile to buy.
B) we see countries specializing completely in the production of automobiles.
C) different countries may each have a comparative advantage in producing different types of automobiles.
D) the quality of imported automobiles is less than it could be.
C
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Which of the following statements about implicit costs is true?
A. They measure the forgone opportunities of the firm's owners. B. They exceed explicit costs. C. They are always fixed. D. They do not enter into the calculation of economic profit.
Complete the following logical statement: "Because of, individuals and societies must make choices, and they must therefore consider the opportunity cost of every action."
When demand is elastic, an increase in price causes the seller's total revenue to:
A. decrease. B. increase. C. fall to zero. D. remain the same.
Which of the following is true about demand?
A. Demand reflects the desire for a good but not necessarily the ability to buy it. B. In order to demand a good, a person must be willing and able to buy the good. C. When drawing a demand curve, influences such as price do not change. D. Demand reflects the ability to buy a good but not necessarily the desire to do so.