Comparative advantage implies choosing the activity that
A) has a high opportunity cost.
B) is inside the production possibilities frontier.
C) has the lowest opportunity cost.
D) does not demand any specialization.
Answer: C
You might also like to view...
The IMF lends at low interest rates and without preconditions
Indicate whether the statement is true or false
Both monetary policy and fiscal policy shift the aggregate demand curve.
a. true b. false
In one day Portal Computer Company made 400 laptops with 1200 hours of labor. What was its productivity?
a. 1/3 laptop per hour b. 3 hours per laptop c. 1200 laptops d. 400 laptops
Tom obtains a car loan from Old Town Bank.
A. The car loan is Tom's asset and the bank's liability. B. The car loan is Tom's asset, but the liability belongs to the bank's depositors. C. The car loan is Tom's liability and a liability of the bank until Tom pays it off. D. The car loan is Tom's liability and an asset for Old Town Bank.