Comparative advantage implies choosing the activity that
A) has a high opportunity cost.
B) is inside the production possibilities frontier.
C) has the lowest opportunity cost.
D) does not demand any specialization.
C
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Consider a large public university in which a chemistry lecture is usually attended by 300 students or so but with large amounts of available seats on any given day
Is this a pure public good? If not, why not? Is this good likely to be provided in an efficient manner if the professor is vigilant in making sure that only registered students attend? Explain.
The costs associated with the negotiation and enforcement of an agreement are
A) property costs. B) resource factor costs. C) transaction costs. D) attorney fees.
Your opportunity cost of choosing a particular activity
a. can be easily and accurately calculated b. cannot even be estimated c. does not change over time d. varies, depending on time and circumstances e. is measured by the money you spend on the activity
Which of the following statements is true?
A. Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice and corn crops. B. Imports and exports account for over one-half of the GDP of Belgium. C. Japan is more dependent on foreign trade than is the United States. D. France is the leading exporting country, accounting for 10 percent of total world exports.