The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n):
A. market advantage.
B. comparative advantage.
C. absolute advantage.
D. specialization advantage.
Answer: C
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In the above figure, at what price does a perfectly competitive firm make zero economic profit?
A) $4 per unit B) $8 per unit C) $12 per unit D) $16 per unit
There is no cost of using your own savings in your business
a. True b. False Indicate whether the statement is true or false
Suppose Congress passes an investment tax credit that increases the quantity of investment goods that firms demand at any given interest rate. Which of the following would you expect to occur as a result of this change?
a. In the short run, unemployment will increase and inflation will fall. b. In the short run, unemployment will increase and inflation will rise. c. In the short run, unemployment will decrease and inflation will rise. d. In the short run, unemployment will decrease and inflation will fall.
Unlike economic profit, economic rent:
A. may not be driven to zero by competition. B. doesn't involve opportunity costs. C. can be less than zero. D. only applies to land.