Comparative advantage leads to producing at a:
A) higher opportunity cost.
B) lower opportunity cost.
C) higher dollar cost.
D) point where costs just begin to fall.
Ans: B) lower opportunity cost.
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The demand for loanable funds curve shifts in response to changes in
A) the amount of household savings. B) the expected future disposable income. C) expected profits. D) the real interest rate. E) wealth.
Which of the following best defines economics?
A) Economics teaches how to limit our wants. B) Economics studies how to choose the best alternative when coping with scarcity. C) Economics helps you earn as much money as possible. D) Economics analyzes all aspects of human behavior in general. E) Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.