Absolute advantage occurs when one producer has greater productivity compared to another producing the same product.
Answer the following statement true (T) or false (F)
True
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Christy and Claudia are aspiring models. Talent scouts consider them to be similarly beautiful. Both enter a talent show. Claudia contracts food poisoning the night before the competition and withdraws. Christy wins the competition and signs a multi-million dollar contract. The differences in their earnings likely reflect
a. discrimination. b. differences in human capital. c. differences in signaling. d. chance.
Which of the following should be included in U.S. GDP?
A. a 3D television manufactured in Thailand and sold in the United States B. a 3D television manufactured in Thailand by a U.S. firm and sold in the United States C. a 3D television manufactured in the United States and sold in Thailand D. a used 3D television manufactured in the United States and sold in Thailand
In the short run, the marginal cost of the first unit of output is $40, the average variable cost of producing three units of output is $32, and the marginal cost of producing the second unit of output is $32. What is the marginal cost of producing the third unit of output?
A. $24 B. $32 C. $40 D. $96
Suppose the best investment you could make with $200,000 in cash is to purchase a government bond that pays 10 percent interest per year. If you decide to invest the money in your own business instead of buying the government bond, the opportunity cost
of this financial capital is A) $2,000 per year. B) $200,000 per year. C) $20,000 per year. D) zero, because you already had the $200,000.