When one person's opportunity cost of producing a good is lower than another person's opportunity cost of producing the same good, it is called
A) an absolute advantage.
B) a comparative advantage.
C) specialization.
D) production possibilities.
E) a trade-off.
B
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In perfect competition, at all levels of output the market price is the same as the firm's ________
A) marginal revenue B) normal profit C) average variable cost D) fixed cost
Which of the following is FALSE about intraindustry trade?
A) Economies of scale allow firms to enjoy lower average costs. B) It creates gains from trade. C) It is due to comparative advantage. D) It may involve heightened competition and lower prices for consumers. E) It increases consumer choice.
A motivation for holding stock is
A. To receive interest payments on the firm's debt. B. To have a direct role in the operation of the corporation. C. To own a low-risk, illiquid asset. D. The anticipation of capital gains.
The primary currency circulating in the United States consists of:
a. bank checks that are certified. b. Federal Reserve Notes. c. credit cards. d. gold certificates.