According to the theory of comparative advantage, a country should
A. specialize in and export goods with the lowest opportunity cost.
B. specialize in and export goods with the lowest production cost.
C. specialize in and export goods with the lowest average cost.
D. specialize in and export goods with the highest opportunity cost.
Answer: A
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Economic agents who borrow funds are known as:
A) receivers. B) debtors. C) investors. D) creditors.
Figure 7-1
Of the graphs in Figure 7-1, which best represents marginal physical product?
A. 1 B. 2 C. 3 D. 4
An economist left her $100,000-a-year teaching position to work full-time in her own consulting business. In the first year, she had total revenue of $200,000 and business expenses of $100,000 . She made a(n):
a. economic profit. b. economic loss. c. implicit profit. d. accounting loss but not an economic loss. e. zero economic profit.
An appeal to people's sense of civic or moral responsibility will ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. increase; smaller B. increase; larger C. reduce; smaller D. reduce; larger