One country has a comparative advantage over another country in the production of a good if it
A) has a curved production possibilities curve and the other country has a linear production possibilities curve.
B) has a linear production possibilities curve and the other country has a curved production possibilities curve.
C) is a lower opportunity cost producer of the good.
D) has lower fixed costs than the other country.
C
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Reformulated gasoline
a. refers specifically to ethanol (10) b. includes enhanced oxygen to enhance combustion c. refers to formulations that release less hydrocarbons, toxics, and CO than conventional gasoline d. includes large amounts of MTBE
Which of the following is NOT one of the economic problems that the "New Economy" is alleged to have solved?
A) deflation B) slow growth in productivity C) the budget deficit D) business cycle
A sunk cost is one that
a. changes as the level of output changes in the short run b. was paid in the past and will not change regardless of later decisions c. should determine the rational course of action in the future d. has the most impact on profit-maximizing decisions e. influences rational decision makers
Bans and quotas ________ in situations where it is difficult or costly for authorities to monitor and punish rule-breakers.
A. often succeed B. always succeed C. sometimes succeed D. rarely succeed