Your comparative advantage in a specific area is determined by
A) minimum wage laws, health and safety standards and marginal tax rates.
B) the market value of the skill relative to your opportunity cost of supplying it.
C) the absolute value of the skill in the performance of a specific job.
D) the comparative positions of the wealthy, the middle income individuals and low income individuals.
B) the market value of the skill relative to your opportunity cost of supplying it.
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If the aggregate price level ________, but nominal wages stay fixed, labor demand ________
A) falls; remains unchanged B) rises; falls C) rises; remains unchanged D) falls; falls
The short-run break-even price is the point at which
A) price is less than marginal cost. B) marginal cost, average total cost and marginal revenue are all equal. C) average variable cost is at a minimum. D) marginal cost, price and average variable cost are all equal.