Someone has a comparative advantage in producing a good if she can produce that good
A. in greater quantities.
B. using more capital and less labor.
C. at a lower opportunity cost.
D. using more labor and less capital.
Answer: C
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The primary focus of microeconomics is
A) to study how we managed to eliminate scarcity. B) our government's monetary policy. C) to examine the behavior and operation of the individual units or sectors that make up the economy. D) the levels of employment and inflation. E) to examine the operation of the entire (aggregate) economy.
Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $15, what is Giuseppe's profit-maximizing output?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 0 pizzas per hour
If the market price is $5 and you are currently producing at a level where average total cost is $3 and falling, you should:
a. b or c, it doesn't matter. b. shut down. c. produce only enough to cover variable costs. d. produce where MR = MC. e. produce until the average total cost and average revenue are equal.
If an American can purchase 40,000 British pounds for $90,000, the dollar rate of exchange for the pound is:
A. $0.44 B. $0.23 C. $2.25 D. $2.00