If Dana can paint his house faster than Luke, a professional house painter, then:
a. Dana has a comparative advantage in house painting.
b. Dana has an absolute advantage in house painting.
c. Luke has a comparative advantage in house painting.
d. Luke has an absolute advantage in house painting.
e. Dana should always paint his own house.
b
You might also like to view...
In closely held firms, the manager-stockholder conflict is
A) worse than in the larger firm because there is no incentive for the individual stockholder to monitor managers. B) the same as in publicly held firms. C) less severe than in the larger firm because there is an incentive for the major stockholder to monitor managers. D) less pronounced than in large public companies, because the manager is the owner.
A variable cost function of the form: VC = 23 + Q + 7Q2 implies a marginal cost curve that is
A) linear. B) downward sloping. C) U-shaped. D) quadratic.
The vertical axis of the aggregate demand-aggregate supply model measures the amount of
a. total employment. b. total final output. c. the price level. d. net exports.
Which statement is false?
A. Compared to 30 years ago, there is more sentiment in the U.S. for protection against the import of foreign goods. B. The basis for international trade is specialization. C. Our balance of trade has been negative since the early 1900s. D. None of these statements are true.