Which of the following best describes comparative advantage?
A) using the fewest number of resources to produce a given amount of output
B) being able to produce more output than any other country
C) having the largest number of resources compared to other countries
D) forgoing the fewest units of one product to produce a unit of another product
E) It is the same as absolute advantage.
D
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The responder in an ultimatum game is likely to reject an offer of 10% of $1 but is less likely to reject an offer of 10% of $100. What is the reason behind such inconsistent behavior?
What will be an ideal response?
How many prices would there be in a barter economy with 100 goods?
A) 100 B) 1,000 C) 4,950 D) 10,000
Briefly discuss the role of moral hazard in risk.
What will be an ideal response?
Setting up a hub-and-spoke distribution towards inventory and retail delivery is an example of
A. reduced consumer transactions cost. B. reduced producer transactions cost. C. increased consumer transactions cost. D. increased producer transactions cost.