A person has a comparative advantage if
a. she can produce everything more cheaply than her co-worker can
b. she can produce everything at a faster rate than her co-worker can
c. she can produce a good with a smaller opportunity cost than her co-worker can
d. she sees through corporate and government manipulation
e. she gets rich through inheritance
C
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When using real GDP per capita to measure the standard of living, it is difficult to capture the value of
a. education b. leisure time c. clean environment d. how income is distributed e. all of the above
Figure 10-2
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. In the short run, this firm would
a.
earn positive economic profits.
b.
earn economic losses.
c.
go out of business.
d.
Cannot be determined with the information given.
Suppose the price of tomato sauce falls. In the market for pizza, in which tomato sauce of a popular ingredient, one would expect that
A. the supply of pizza would increase, and the price would fall. B. the demand for pizza would decrease, and price would fall. C. the demand for pizza would increase, and the price would increase. D. the supply of pizza would decrease, and price would rise.
Average total cost equals
A) TC/Q. B) TVC/Q. C) TFC/Q. D) change in total cost/change in output.