If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ________ in the production of that good.
A. comparative advantage
B. absolute advantage and possibly a comparative advantage.
C. absolute advantage
D. comparative advantage and an absolute advantage
Answer: A
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To achieve allocative efficiency, one must compare the
A) marginal cost of a good to its opportunity cost. B) opportunity cost to the attainable point on the production possibilities frontier. C) marginal benefit of a good to its marginal cost. D) marginal cost to the production efficiency cost. E) point of production efficiency to the point of allocative efficiency.
The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the efficient number of students at the college?
A) 1,000 B) 3,000 C) 4,000 D) 5,000
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W30X30 What will be Campus Books' economic profit if it must charge a single price to all of its customers?
A. $180 B. $120 C. $130 D. $128
A decreasing portion of the U.S. national debt is held by
A. government trust funds. B. the public and the Federal Reserve. C. the Federal Reserve. D. the public.