Comparative advantage is the ability to produce:
A. relatively more than any other good with a given amount of resources.
B. more of a good than others with a given amount of resources.
C. more of a good at a lower cost.
D. a good or service at a lower opportunity cost than others.
Answer: D
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The SAS curve shifts if there is a change in the price level
Indicate whether the statement is true or false
In Spain, people are considered organ donors unless the explicitly indicate they do not want to be. In the United States, people are only considered organ donors if they explicitly indicate they wish to be. Behavioral economics would suggest that
A) everything else equal, the opt-in system of Spain would generate more organ donors as a percentage of the adult population. B) everything else equal, the opt-in system of the United States would generate more organ donors as a percentage of the adult population. C) everything else equal, the opt-out system of Spain would generate more organ donors as a percentage of the adult population. D) everything else equal, the opt-out system of the United States would generate more organ donors as a percentage of the adult population.
The Pat Summerall School of Diction is employing teachers such that the marginal revenue product of teachers exceeds the wage rate. The school will
a. reduce its demand for teachers b. lay off teachers c. be losing money from those teachers employed d. hire more teachers e. increase the price of diction classes
The choice of transfer-pricing method:
A. does nothing to profits of sub-units. B. affects the firm's total profits. C. merely reallocates total company profits among its bigger units. D. merely reallocates total company profits among its smaller units.