A person has a comparative advantage in an activity whenever he or she
A) has an absolute advantage in the activity.
B) can perform the activity at a lower opportunity cost than can anyone else.
C) can do the activity in less time than anyone else.
D) can do everything better than anyone else.
B
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The benefits-received principle is based on the idea that higher taxes on the rich are justified because the rich can afford to pay higher taxes
Indicate whether the statement is true or false
In the above figure, a sales tax of $1 per unit imposed on sellers ________ the price buyers pay and ________ the price that suppliers keep for themselves
A) affects; does not affect B) does not affect; affects C) does not affect; does not affect D) affects; affects
Suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. In all other respects, the two types of houses are identical. Houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. Sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. Suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. How could the owner of a house with a solid foundation credibly signal to potential buyers that the house has a solid foundation?
A. Lower the asking price to $196,000. B. Keep the house on the market for $200,000 because eventually buyers will catch on. C. Simply tell potential buyers that the foundation is solid. D. Offer a warranty to fix any foundation problems that develop in the next 12 months.
One city that has repealed many of its rent-control laws is
A. Miami. B. San Jose. C. New York. D. Boston.