A person has a comparative advantage in an activity whenever she
A) has an absolute advantage in the activity.
B) can perform the activity at a lower opportunity cost than can another person.
C) can do the activity in less time than anyone else.
D) can do everything better than anyone else.
B) can perform the activity at a lower opportunity cost than can another person.
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If we compare a perfectly competitive market to a single-price monopoly with the same costs, the monopoly sells
A) the same quantity at a higher price. B) a smaller quantity at a higher price. C) a larger quantity at a lower price. D) a larger quantity at a higher price. E) a smaller quantity at the same price.
Refer to Table 5.4. If outcomes 1 and 2 are equally likely at Job A, and if at Job B the $20 outcome occurs with probability .1, and the $50 outcome occurs with probability .9, then
A) Job A is safer because the difference in the probabilities is lower. B) Job A is riskier only because the expected value is lower. C) Job A is riskier because the standard deviation is higher. D) Job B is riskier because the difference in the probabilities is higher. E) There is no definite way given this information to tell how risky the two jobs are.
The budget of an economy is said to be in deficit when: a. federal outlays exceed revenues
b. federal revenues exceed outlays. c. anticipated inflation rate exceeds its actual rate. d. there is a loss of value of a country's currency with respect to one or more foreign reference currencies. e. anticipated interest rate exceeds its actual rate.
The threat of rejection in market transactions:
A. leads to higher prices as sellers try to cover possible losses. B. leads to better products and lower prices for consumers. C. leads to less cooperation between buyers and sellers. D. does all of these.