If Japan has a comparative advantage over Canada in the production of computers, which of the following must be true?
a. Supply of unskilled labor in Japan is higher than that in Canada.
b. Japan incurs a lower input cost in the production of computers.
c. Japan incurs a higher input cost in the production of computers.
d. Japan has a lower opportunity cost in the production of computers.
e. Japan has a higher opportunity cost in the production of computers.
d
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A) firm B) market C) enterprise D) government
A paint firm has just announced that it will be building a new plant in a small town that is currently experiencing a high level of unemployment. The new plant will create 500 new jobs in the area and will occupy unused land at the edge of town
The plant will also dump some harmful chemicals into the town's river. From an economic standpoint this dumping of chemicals A) is unimportant since the firm is reducing the unemployment in the region. B) creates a negative externality. C) is the production of a public good. D) creates a positive externality.