Which famous economist developed the principle of comparative advantage as we know it today?
a. Adam Smith
b. David Ricardo
c. John Maynard Keynes
d. Milton Friedman
b
You might also like to view...
Costs of production that change with the rate of output are
A) sunk costs. B) opportunity costs. C) fixed costs. D) variable costs.
If there are low barriers to entry, a monopolist
A) might undertake investment to lower marginal cost in the face of a potential rival. B) will undertake investment to lower marginal cost in order to increase profits. C) will not undertake investment to lower marginal cost under any circumstances because profits are lower. D) Both A and B.
In a perfectly competitive market, long-run equilibrium requires which of the following?
a. Allocative efficiency and productive efficiency b. Allocative efficiency and zero profits c. Productive efficiency and zero profits d. Productive efficiency and elasticity
How might the input market for capital affect the labor market?
a. Workers might be replaced by machines if capital costs are lower than wages. b. As the cost of capital rises, owners are more willing to increase the supply. c. Demand for capital rises as the supply of labor moves toward equilibrium. d. When equipment is new, workers usually do not help to increase profits.