The principle of comparative advantage states that a product should be exported by
a. the country with the lowest dollar cost
b. the country with the lowest labor cost
c. the country with the lowest opportunity cost
d. the country that has more of that product
e. all of the above
C
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Which of the following factors will lead to a decrease in the current supply of a good?
A. A technological advance that decreases production costs B. A fall in the current price of a good or service C. A decrease in the price of inputs to the production process D. A belief that the price of a good or service will go up in the future
The local diner is usually jammed on Saturday mornings. Luke knows the owner and had him reserve a stool at the counter. Luke has
A) cooperated with the owner. B) competed with other customers. C) taken an efficient course of action, from his own perspective. D) engaged in all of the above.
Suppose the equilibrium price in a perfectly competitive industry is $10 and a firm in the industry charges $9 . Which of the following will happen?
a. The firm will not sell any output. b. The firm will sell less output than its competitors. c. The firm will make more profit than it could at the $10 price. d. The firm will make less profit than it could at the $10 price. e. The firm's revenue will increase and its costs may decrease.
The classical economists argued that saving is matched by an equal amount of investment because of
A) wage flexibility. B) price flexibility. C) money flexibility. D) interest rate flexibility. E) b and c