Comparative advantage is the ability, compared with another producer
A) to produce more of a product with the same resources.
B) to use fewer inputs to produce the same amount of a product.
C) to produce a higher-quality product with fewer resources.
D) to produce an additional unit of a product at lower opportunity cost.
D
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A shift to a more expansionary monetary policy will generally _________ in the short run, but if the rapid monetary expansion persists, the long-run result will be ______.(fill in the blanks.)
a. expand output and employment; inflation b. increase the general level of prices; expand output and employment c. increase the rate of unemployment; reduce the rate of inflation d. reduce the rate of inflation; increase the rate of unemployment
Refer to the figure at right. Profits will equal zero
A. when the price equals $1
B. at prices between $1 and $2
C. when the price equals $2
D. when the price equals $4