The principle of comparative advantage says that
a. every individual should specialize in producing that good for which the absolute cost is the smallest
b. the output of society as a whole will be the greatest if every individual specializes in producing that commodity for which his opportunity cost is the smallest
c. monopoly power is gained by specializing in a large market and reducing costs
d. monopoly power is gained by specializing in a small market and producing a differentiated product
e. your financial investments should be "compared" in a common fashion to determine your maximum advantage
B
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In the Keynesian model, whenever planned investment is less than planned saving
A) the amount of planned investment will decrease, and real GDP will decrease. B) there will be an unplanned inventory increase, and real GDP will eventually decrease. C) there will be an unplanned inventory decrease, and real GDP will eventually increase. D) the amount of planned investment will decrease, and real GDP will remain unchanged.
A firm's production function is the relationship between:
A) the inputs employed by the firm and the resulting costs of production. B) the factors of production and the resulting outputs of the production process. C) the demand for a firm's output and the quantity it is able to produce with available resources. D) the firm's production costs and the amount of revenue it receives from the sale of its output.
Explain how the equilibrium wage rate is determined for a perfectly competitive industry and how a firm in that industry determines its profit maximizing employment level
What will be an ideal response?
Those who generally have low willingness to take on risk are said to be:
A. risk-seekers. B. risk-averse. C. high-compensation players. D. low-risk players.