What does it mean for a country to have a comparative advantage in producing a product?
What will be an ideal response?
A country has a comparative advantage in producing a product when it has the ability to produce that product at a lower opportunity cost than competitors.
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The process by which individuals limit their productive efforts to a particular activity instead of trying to produce directly everything that they need is known as
a. specialization. b. using absolute advantage. c. using exchange. d. scarcity.
A monopolist sells to two consumer groups, students and non-students
Demand for students: Q = 500 - 1/2P Demand for non-students: Q = 750 - 2P MC = 20 Find the profit-maximizing price/quantity combination in each market if the groups can be separated.
The total value of all final goods and services, measured in current market prices, produced in an economy during a year is
a. total domestic product b. gross domestic product c. real GDP d. gross value product e. total final product
If the money supply is $3,000, velocity is 4 and the price level is $2, then Real GDP is _____________ units of output. If the money supply doubled over a short time period to $6,000, the simple quantity theory of money would predict that ______________________
A) 3,000; the price level would double B) 6,000; Real GDP would double C) 625; the price level would be cut in half D) 6,000; the price level would double