The ________ states that the individual, firm, region, or country with the lowest opportunity cost of producing a particular good should specialize in producing that good
a. law of absolute advantage
b. law of comparative advantage
c. law of diminishing marginal utility
d. law of increasing opportunity cost
b
You might also like to view...
Which of the following would not be studied by macroeconomists?
A. The effects of tax cuts on consumer spending. B. Factors affecting average wages in the U.S. economy. C. Inflation in developing countries. D. The worldwide operations of General Motors
According to the World Bank definitions, there are more people in the world living in extreme poverty than there are living in severe poverty.
Answer the following statement true (T) or false (F)
Refer to Figure 18.4. With free trade, how many gloves are produced domestically in Duckland?
A. 100 B. 80 C. 60 D. 0
Which of the following is NOT correct?
A. ATC + AVC = AFC B. ATC = TC/Q C. AVC = TVC/Q D. MC = change in TC/change in Q