The law of comparative advantage implies that a nation, individual, or region should produce those economic goods for which it
a. has an absolute advantage.
b. is a low opportunity cost producer.
c. is a high opportunity cost producer.
d. pays the highest wage rate.
B
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Refer to the table above. The opportunity cost per dollar of value added in designing shoes by workers in Laborland is ________
A) $0.25 B) $0.50 C) $2 D) $4
Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $15, what is Giuseppe's profit-maximizing output?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 0 pizzas per hour
During a deflationary period
A) the nominal interest rate is less than the real interest rate. B) the real interest rate is less than the nominal interest rate. C) the nominal interest rate does not change. D) the price level rises.
Borrowing to pay for long-lived capital expenditures makes sense as
A) the benefits are received in the current year so the burden of paying for them should be spread over many years. B) the benefits are received in the current year so the burden of paying for them should be paid in the current year. C) the benefits are received over many years so the burden of paying for them should be spread over many years. D) the benefits are received over many years so the burden of paying for them should be paid in the current year.