When a person has a comparative advantage in producing a good or service, the person has
A) a higher opportunity cost in producing that product than someone else.
B) a constant opportunity cost in producing that product.
C) a decreasing opportunity cost in producing that product.
D) a lower opportunity cost in producing that product than someone else.
E) an increasing marginal benefit in producing the good.
D
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If you buy a commemorative Princess Diana stamp issued by the British government, the purchase is considered part of:
a. C. b. I. c. G. d. X. e. M.
The statement that a monopoly raises the price of its product is an example of positive economics
Indicate whether the statement is true or false
An increase in labor supply will:
a. decrease the equilibrium wage rate and increase the number of workers hired. b. increase the equilibrium wage rate and decrease the number of workers hired. c. decrease both the equilibrium wage rate and the number of workers hired. d. increase both the equilibrium wage rate and the number of workers hired.
"Wine experts are discovering that California wines of several varieties and vintages are comparable to many of the best French wines. The result is an increased demand, here and abroad, for California wines." With regard to the U.S. balance on current account, this trend will
a. increase the U.S. deficit because of the rise in the price of California wine. b. decrease the U.S. deficit because of increased shipments of California wines abroad. c. decrease the demand for U.S. dollars. d. increase the U.S. demand for euros.