An individual has an absolute advantage in producing pizzas if that individual:
A. charges the lowest price for pizzas.
B. has a higher opportunity cost of producing pizzas than anyone else.
C. has a lower opportunity cost of producing pizzas than anyone else.
D. can produce more pizzas in a given amount of time than anyone else.
Answer: D
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Refer to the figure above. Which of the following combinations is unattainable?
A) A B) B C) D D) E
Diversification reduces the risk that ________ face with ________ cost.
A) firms; little to no B) shareholders; little to no C) firms; zero D) shareholders; high
GDP equals $5 trillion. If consumption equals $3.5 trillion, investment equals $1 trillion, and government spending equals $1.5 trillion, then:
a. exports exceed imports by $1 trillion. b. imports exceed exports by $1 trillion. c. net exports equal zero d. exports exceed imports by $1.5 trillion.
The marginal revenue product (MRP) of labor is the
a. total revenue generated when one more worker is hired b. change in average revenue when one more worker is hired c. total revenue per worker when one more worker is hired d. change in total revenue when one more worker is hired e. change in employment when total revenue changes by one dollar