Comparative advantage is based on
A. capital costs.
B. labor costs.
C. dollar price.
D. opportunity costs.
Answer: D. opportunity costs.
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The price elasticity of demand for nursery products is -10. The advertising elasticity of demand is 0.4. Using the "Rule of Thumb for Advertising," the profit maximizing level of advertising will be set at ________ of sales
A) 0.25 percent B) 0.4 percent C) 4 percent D) 40 percent
Constitutional economists
A) assert that within a given set of institutions, constraints, laws and rules, outcomes might be the same no matter who is elected to office. B) study the type of constraints that individuals might seek to place upon themselves in order to achieve some objective that doesn't seem achievable in a non-constrainable environment. C) assert that better outcomes arise from changing the political party in power at any given point in time than from changing institutions and constraints. D) b and c E) a and b
Suppose the price level in Germany rises, ceteris paribus. This ________________ United States net exports, ultimately shifting the United States AD curve ____________________
A) stimulates; rightward B) stimulates; leftward C) depresses; rightward D) depresses; leftward.
If a business is losing money in the short run, the owner will try to minimize
A. losses per unit of output. B. total cost. C. total losses. D. output.