Comparative advantage implies that you
A) can produce more units of a good or service than another.
B) can produce a good or service at a lower opportunity cost.
C) can produce goods with more capital resources.
D) can produce goods with more human resources.
B
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Suppose a used car dealer can earn an additional $25,000 in revenue per year by increasing advertising on a local radio station from 3 times a day to 5 times a day
At what additional cost would this increase in advertising not be considered economically rational?
At a price of P0 in the above figure, which of the following statements is FALSE?
A) Quantity demanded equals quantity supplied. B) There is an equilibrium in the market. C) P0 is the market clearing price. D) There is a surplus equal to Q0.
If the price of inputs rises and foreign income rises:
a. Price index falls, and real GDP rises. b. Price index falls, and real GDP falls. c. Price index falls, and the change in real GDP is uncertain. d. Price index rises, and the change in real GDP is uncertain. e. The change in price index is uncertain, and real GDP falls.
Suppose two variables are inversely related. If one variable rises, then the other variable:
A. also rises. B. falls. C. remains unchanged. D. reacts unpredictably.