If one country can produce a good with fewer resources than another country, this is called:
a. absolute advantage.
b. geographic advantage.
c. specialization.
d. comparative advantage.
a
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In the above figure, the shift in the supply curve from S to S1 reflects
A) an increase in the quantity of pizza supplied. B) a decrease in the quantity of pizza supplied. C) an increase in the supply of pizza. D) a decrease in the supply of pizza. E) None of the above answers is correct.
A firm's fixed but avoidable costs are $100,000 and its variable costs are $250 per unit. It produces 50,000 units and prices it at $400 per unit. In the long-run, how low can price go before the firm decides to shut down?
a. $150 b. $252 c. $250.20 d. $400
In the discussion of correlation and causation, correlation means: a. two sets of phenomena may be related, but one does not necessarily cause the other
b. two sets of phenomena are not related and one may in fact cause the other. c. that when two phenomena are repeatedly observed together, one must cause the other. d. that if a groundhog sees his shadow in February, this phenomena causes there to be six more weeks of bad weather.
An expansionary monetary policy: a. decreases inflation in the long run
b. increases unemployment in the long run. c. increases potential GDP in the long run. d. increases inflation in the long run.