"Comparative advantage" is defined as a situation in which one person can produce
A) more of all goods than another person.
B) more of a good than another person.
C) a good for a lower dollar cost than another person.
D) a good for a lower opportunity cost than another person.
E) all goods for lower opportunity costs than another person.
D
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The market clearing price of computer modems has just decreased. Which of the following could have caused this change?
A) a decrease in supply at the same time that demand increases B) an increase in supply at the same time that demand decreases C) a decrease in supply with demand unchanged D) an increase in demand with supply unchanged
Discuss differences in production technologies available in various countries as a basis for comparative advantage. In your answer, include a discussion of the role of and the location of R&D. In your answer, include a discussion of the role of and the location of R&D.
What will be an ideal response?
If an agricultural market is perfectly competitive, then
A. Each firm's demand curve is perfectly inelastic. B. A farmer practices price discrimination. C. The market demand curve is perfectly elastic. D. A farmer is a price taker.
To maximize profits, the firm in Figure 10.3 will produce:
A. Q1. B. Q2. C. Q3. D. Q4.