A country is said to have a comparative advantage in producing a good over another country if that first country
A. is a major consumer of the good.
B. can produce more units of the good.
C. has a lower opportunity cost of producing the good.
D. is a more efficient producer of the good.
Answer: C
You might also like to view...
In 1931, the first major country to abandon the gold standard — in order to increase its policy options in face of the Great Depression — was
A) Germany. B) France. C) Great Britain. D) the United States.
Comfy Clothing is thinking of hiring Tom. If hired, he can increase total production by 100 units a week. He would cost the firm $1,500 a week in wages. If the price of each unit is $20,
a. The MR of hiring the worker is $1,500 b. The MC of hiring Tom is $1,500 c. The firm should hire Tom since MR>MC d. All the above
A _______ demand curve has a price elasticity of demand that is perfectly inelastic
a. circular b. horizontal c. rectangular hyperbola d. vertical
For any given family of indifference curves, a consumer would prefer to be at a point:
A. on the indifference curve that is closest to the origin. B. that is far to the right on an indifference curve. C. that is far to the left on an indifference curve. D. on the indifference curve that is farthest from the origin.