The ability to produce a good or service at a lower opportunity cost than other producers is
A) absolute advantage.
B) comparative advantage.
C) opportunity advantage.
D) special advantage.
Answer: B
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A(n) ________ is a sharp increase in asset prices brought about by unrealistic expectations about further price growth.
A. speculative bubble B. austerity measure C. financial crisis D. economic stimulus
Jason considers a crystal bowl, a silver dish, and a pewter figurine, each priced $45 at the local gift shop. He chooses the silver dish because according to economic theory,
A. his marginal utility per dollar is greatest. B. his total utility is minimized. C. his marginal utility is equal to his total utility. D. silver costs more per ounce than pewter.
What would happen in the market for rice if its demand increased but the price was NOT allowed to change?
A) There would be a surplus of rice. B) There would be a shortage of rice. C) The supply of rice would increase. D) The supply of rice would decrease.
The underlying cause of risk in finance is:
A. Danger B. Uncertainty C. Fear D. Complexity