Absolute advantage is
A) the ability to produce more output from given inputs than another producer can.
B) the ability to produce a good at a lower opportunity cost than other producers.
C) is always a relative concept.
D) the ability to produce all goods at lower costs than anyone else can.
Answer: A
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If Billy's reservation price on a snowboard is $250, how many snowboards would he buy if the market price of snowboards is $500?
A. 0 B. 1 C. 2 D. The amount of snowboards purchased would depend on Billy's income.
In fact, several studies focused on Europe concluded that higher exchange rate volatility:
A) is associated with smaller price differentials. B) is associated with larger price differentials. C) often precedes a return to stability. D) promotes trade and cooperation among nations.
A pollution tax:
A. decreases the price of the good taxed. B. increases the price of the good taxed. C. does not affect the quantity demanded of the good taxed. D. does not affect the price of the good taxed.
For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A. the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers. B. in order for the monopsonist to hire more labor the monopsonist must also purchase more capital. C. in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered. D. the monopsonist will take advantage of labor and offer them lower wages.