Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does NOT change the oil himself?
A. The opportunity cost of changing oil is higher for Tiger Woods than for the garage mechanic.
B. Tiger Woods has an absolute advantage in changing oil.
C. There is no opportunity cost for the garage mechanic to change oil.
D. Tiger Woods has a comparative advantage in changing oil.
Answer: A
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Indicate whether the statement is true or false
A major stumbling block to the completion of the Uruguay Round was a disagreement between the United States and the EU over rules covering international trade in
A) services. B) steel. C) agricultural products. D) textiles.
Which of the following statements is correct?
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Which of the following will reduce the risk of equity (stock) investments?
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