The ability to produce an item at a lower opportunity cost compared with other producers is known as
A. competitive dominance.
B. comparative advantage.
C. productive dominance.
D. absolute advantage.
Answer: B
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Entrepreneurship results in an equal distribution of wealth and income
Indicate whether the statement is true or false
Cartel prices are inherently stable.
Answer the following statement true (T) or false (F)
The quantity theory of money implies that an increase in the money supply will ultimately:
A. affect only the level of real GDP; the price level will remain unchanged. B. increase the price level and leave real GDP unchanged. C. increase the price level and the level of real GDP. D. decrease the price level and the level of real GDP.
The long-run trend of real wages:
A. cannot be determined from available data on nominal wages and the price level. B. has been downward because the price level has risen faster than nominal wages. C. has been upward. D. has been downward because labor's share of the domestic income has fallen.