________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
A) Autarky B) Absolute advantage
C) Comparative advantage D) Specialization
C
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The characteristic from which all economic problems arise is
A) how to make a profit. B) political decisions. C) hunger. D) scarcity. E) providing a minimal standard of living for every person.
Rhonda's utility of wealth is 65 units at $5,000, 80 units at $7,000, and 95 units at $10,000. Starting from zero wealth, she must choose between options A and B
Option A gives her $7,000 for sure. Option B gives her $5,000 with probability 0.6 or $10,000 with probability 0.4. Rhonda A) will choose A. B) will choose B. C) is indifferent between A and B. D) needs more information to make a choice.
Increasing marginal opportunity cost implies that
A) that rising opportunity costs makes it inefficient to produce beyond a certain quantity. B) the law of scarcity. C) the more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts. D) the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
Which of the following characteristics does not contribute to the identification of specific market structures?
a. number of firms b. ease or difficulty of entry c. complementarity of goods d. control over price e. substitutability of goods