The principle of comparative advantage states that
a. whoever has a comparative advantage in producing a good or service also has the absolute advantage
b. whoever has an absolute advantage in producing a good or service also has the comparative advantage
c. whoever can produce a good or service using fewer resources than another individual has the comparative advantage
d. total production of every good or service can be greater if individuals specialize according to their comparative advantage
e. comparative advantage is maximized if each individual specializes according to his or her absolute advantage
D
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If a monopolist decides to charge a higher price for its product, it will yield:
A) a lower revenue per unit sold but a higher number of units sold. B) a lower revenue per unit sold and a lower number of units sold. C) a higher revenue per unit sold but a lower number of units sold. D) a higher revenue per unit sold and a higher number of units sold.
What is the term used to discuss production expenses that do not change with output, such as building lease payments or monthly insurance premiums?
a. indirect costs b. implicit costs c. fixed inputs d. variable inputs
Refer to Figure 1A.2. If this consumer rents 60 DVDs, how many movie tickets will she purchase?
A. 0 B. 5 C. 10 D. 15
When does the burden of a tax imposed on a good fall more heavily on sellers?
What will be an ideal response?