Absolute advantage is
A) the ability to produce more of a good or service than competitors when using the same amount of resources.
B) the ability to produce higher quality goods compared to one's competitors.
C) the ability to produce a good or service at a higher opportunity cost than one's competitors.
D) the ability to produce more of a good or service than competitors that have fewer resources.
Answer: A
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Consumption functions would shift downward if
A. disposable incomes fall. B. disposable incomes rise. C. price levels fall. D. price levels rise.
When a government has a budget surplus, the surplus
A) helps finance investment. B) crowds-out private saving. C) must be subtracted from private saving to get total saving. D) increases the world real interest rate.
Technology is an important factor in explaining the high incomes of some athletes primarily because
a. technology accounts for differences in incomes within all occupations. b. technology makes it possible for very large numbers of people to watch athletes perform. c. technology improves the performance of athletes. d. technology requires human capital to use it efficiently.
Some economies have production possibilities frontiers that are bowed inward toward the origin.
Answer the following statement true (T) or false (F)