A person has a comparative advantage in producing a good if:
a. that person can produce the good at a lower absolute cost than anyone else.
b. that person can produce the good at a lower opportunity cost than anyone else.
c. that person has a perfectly elastic demand curve for her good.
d. that person spends less on advertizements.
e. that person can produce the good at a higher opportunity cost than anyone else.
b
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Suppose that there is an increase in expected future disposable income and simultaneously an increase in the expected profitability of investment
As a result, the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________. A) rises; decreases B) falls; might increase, decrease, or not change C) rises; might increase, decrease, or not change D) rises; increases E) falls; increases
Higher government deficits ________ the supply of bonds and shift the supply curve to the ________, everything else held constant
A) increase; left B) increase; right C) decrease; left D) decrease; right
Why do theater owners often set lower ticket prices for students than for adults?
What will be an ideal response?
Countries with high labor costs tend to:
a. rely on only one method for the production of goods
b. use more labor rather than capital in the production process.
c. use more capital rather than labor in the production process.
d. be relatively poor countries.