The difference between absolute and comparative advantage is that:
a. absolute advantage refers to input cost, while comparative advantage refers to opportunity cost.
b. absolute advantage refers to opportunity cost, while comparative advantage refers to input cost.
c. absolute advantage is applicable only to individuals, and comparative advantage is applicable only to countries.
d. absolute advantage is applicable only to countries, and comparative advantage is applicable only to individuals.
e. absolute advantage is applicable to international trade, while comparative advantage applies to exchange of goods in the domestic market.
a
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Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket, $2.50 per bucket, and $3 per bucket, and so forth, we have found the
a. market demand curve. b. market supply curve. c. equilibrium curve. d. surplus or shortage depending on market conditions.
If nominal GDP is $15 trillion and real GDP is $12 trillion, the GDP deflator is:
A. 120. B. 125. C. 75. D. 150.