Which of the following describes Jonathan having a comparative advantage in producing apples?
What will be an ideal response?
giving up less production of other goods when producing an apple
FEEDBACK: The person with the comparative advantage is always the one with the lowest opportunity cost. This means Jonathan has a comparative advantage in producing apples if he gives up less production of other goods when he produces apples.
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A pollution tax penalizes inefficient firms.
Answer the following statement true (T) or false (F)
Assuming a multiplier effect, but no crowding-out or investment-accelerator effects, a $100 billion increase in government expenditures shifts aggregate
a. demand rightward by more than $100 billion. b. demand rightward by less than $100 billion. c. supply leftward by more than $100 billion. d. supply leftward by less than $100 billion.
An externality is:
A. always a benefit to the recipient. B. always a detriment to the recipient. C. an activity that occurs in a business which is unknown to management. D. unintended benefits or costs imposed on third parties as a result of economic activity.
Economic rent is associated with
A. high wages. B. low wages. C. factory workers. D. agricultural workers.