Entrepreneurs tend to have a comparative advantage in
A) arbitrage.
B) manipulating market prices.
C) stealing other people's ideas.
D) selling their products below cost.
E) hiring others to act as residual claimants.
A
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To be counted in the labor force
A) a person has to be working at least 40 hours per week. B) a person has to be at least 16 or older, have a job, or if unemployed has to be actively seeking employment. C) a person, irrespective of his or her age, has to be working or, if out of work, actively seeking employment. D) a person has to be over 16 years of age, irrespective of whether she or he is actively seeking work.
Which of the following categories accounted for the largest percentage of total federal government expenditures in recent years?
a. Income security. b. National defense. c. Education and health. d. Interest on the national debt.
Which of the following statements is true about comparative advantage?
a. Comparative advantage exists whenever one person, firm, or nation can do something at higher opportunity costs than some other individual, firm, or nation. b. Comparative advantage is interesting theoretically, but it is not relevant when evaluating real-world economic conditions. c. Low income countries cannot possibly have a comparative advantage in the production of any good or service because of the relatively low literacy rate. d. Comparative advantage exists whenever one person, firm, or nation can do something at lower opportunity costs than some other individual, firm, or nation. e. Only technologically advanced economies can have a comparative advantage in the production of a good or service.
Assume that the labor market is perfectly competitive. An increase in the productivity of labor
A) causes the marginal factor cost of labor to decrease. B) generates a lower wage rate. C) causes an increase in the demand for labor. D) causes a reduction in the demand for labor since each worker is now more productive.