Comparative advantage refers to the ability to produce output with fewer resources than any other country.
Answer the following statement true (T) or false (F)
False
Comparative advantage refers to the ability to produce output at a lower opportunity cost than any other country.
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Expenditure switching refers to
A) a switching back and forth between investment and consumption expenditures. B) a switching back and forth between domestic and foreign goods in response to changes in the exchange rate. C) a switching back and forth between domestic and foreign goods in response to changes in the interest rate. D) a switching of back and forth in the current account from a deficit to a surplus and vice versa.
The limitations on purely voluntary exchange created by positive externalities
If the (steadily increasing) marginal cost of another day spent in the hospital exceeds the (steadily decreasing) marginal benefit of an additional day spent in the hospital, the rational consumer of health care services would be predicted to
A. regret having ever entered that hospital. B. choose not to stay in the hospital for that additional day. C. stay in the hospital for at least that additional day. D. demand a private hospital room.
Refer to the data provided in Table 11.4 below to answer the following question(s).
Table 11.4 
Refer to Table 11.4. When the interest rate ________, the farmer will investment in all four projects.
A. is greater than 10% B. is less than 10% C. is greater than 30% D. is less than 30%