Suppose Jim and Tom can both produce baseball bats. If Jim's opportunity cost of producing baseball bats is lower than Tom's opportunity cost of producing baseball bats, then
a. Tom must have an absolute advantage in the production of baseball bats.
b. Jim must have an absolute advantage in the production of baseball bats.
c. Tom has a comparative advantage in the production of baseball bats.
d. Jim has a comparative advantage in the production of baseball bats.
d
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If the firm's marginal physical product is 8, and its handicrafts sell for $70, at a labor cost of $150, the firm is operating
a. short of an optimal input point. b. at the optimum input point. c. beyond the optimum input point. d. There isn't enough information to determine if the input point is optimal.
A rational person:
A. makes choices based on added benefits and added costs. B. considers the financial benefits and financial costs of making a choice. C. undertakes activities until the net benefits become less than zero. D. makes choices based on total benefits and total costs.
According to the text, which of the following is a macroeconomic outcome?
A. Internal market forces B. Policy levers C. International balance D. Population growth
Macroeconomics would be concerned with
A. the effects of a tax on beer. B. the effects on individual consumers of changes in the price of gasoline for a business. C. implications of changes in unemployment and inflation. D. the effects of wage increases on steel manufacturers.