The ability to produce a good at a lower opportunity cost than another producer is called
A) absolute advantage.
B) comparative advantage.
C) specialization.
D) protectionism.
B
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An insurance policy is a product that:
A. allows people to pay to reduce uncertainty in some aspect of their lives. B. involves a company paying individuals very large sums of money if they encounter any risk. C. involves individuals paying a company to ensure they don't experience any risk. D. involves individuals paying a regular fee in return for an agreement that the insurance company will cover all expenses associated with risky behavior.
The supply of paintings by Van Gogh is most likely to be
a. of infinite elasticity because supply is limited b. of high elasticity because supply is limited c. elastic because the paintings are luxury goods d. inelastic because supply is limited e. unit elastic
Which of the following is a category (degree) of inflation?
(a) Deflation. (b) Externally induced inflation. (c) Demand-Pull inflation. (d) Stagflation.
If a bond's purchase price equals the face value the:
A. current yield equals the yield to maturity, which exceeds the coupon rate. B. coupon rate equals the yield to maturity, which equals the current yield. C. coupon rate equals the current yield, which is less than the yield to maturity. D. coupon rate does not equal the current yield, which does not equal the yield to maturity.