If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ________ in the production of that good.
A. absolute advantage and possibly a comparative advantage
B. absolute advantage
C. comparative advantage and an absolute advantage
D. comparative advantage
Answer: D
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The change in price that results from a rightward shift in demand will be greater if
A) the supply curve is horizontal than if the supply curve is upward sloping. B) the supply curve is relatively steep than if the supply curve is relatively flat. C) the supply curve is upward sloping than if the supply curve is vertical. D) the supply curve is horizontal than if the supply curve is vertical.
The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10. If he signed a fixed-fee rental contract with the store owner and pays $1000 as the rent,
A) Nick will sell 20 MP3 players. B) Nick will sell 40 MP3 players. C) Nick will sell 50 MP3 players. D) Nick will not sign the contract.
In a competitive market, a decrease in consumer demand leads to
a. a decrease in output b. an increase in output c. economic profits d. higher prices e. technological innovation
A noncompeting labor market is best illustrated by the market for
a. fast food workers b. high school teachers c. automobile workers d. concert violinists e. insurance salespeople