Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity?
a. One individual's production possibilities frontier is steeper than the other individual's production possibilities frontier.
b. One individual is faster at both activities than the other individual.
c. One individual's opportunity costs are the same as the other individual's opportunity costs.
d. None of the above is correct; one of the two individuals always will have a comparative advantage in at least one of the two activities.
c
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Which of the following is a macroeconomic question?
A) Why did a leading computer manufacturer establish call centers in India? B) Should the government put a tax on alcohol in an attempt to assist in the funding of support groups like Alcoholics Anonymous? C) Should we have a constitutional amendment requiring the government to implement a national consumption tax to replace the current income tax? D) Why does a pharmaceutical manufacturer try to lower its production costs?
The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the best prospect of winning in an election by well-informed voters is
A) A. B) B. C) C. D) zero units supplied.