A resource is said to have a comparative advantage if:
A. its suitability to the production of one good changes as it produces more of that good.
B. it is better suited to the production of one good than to the production of an alternative good.
C. it is equally suited to the production of all goods.
D. its suitability to the production of one good does not change as it produces more of that good.
Answer: B
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Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes and the supply curve of shoes ________
A) increases; shifts rightward B) increases; shifts leftward C) decreases; shifts rightward D) decreases; shifts leftward E) does not change; does not shift
Credit risk is the risk that
A) an insufficient number of borrowers will apply for loans or credit. B) interest rates will rise after a loan has been granted. C) interest rates will fall after a loan has been granted. D) borrowers might default on their loans.
In the United States, antitrust law focuses primarily on all of the following except which one?
A) consumer welfare B) the means to monopolize a market C) furthering the social interest D) efficiency
For a college student who wishes to calculate the true costs of going to college, the costs of room and board
a. should be counted in full, regardless of the costs of eating and sleeping elsewhere. b. should be counted only to the extent that they are more expensive at college than elsewhere. c. usually exceed the opportunity cost of going to college. d. plus the cost of tuition, equals the opportunity cost of going to college.