Comparative advantage implies choosing the activity that
A) has a high opportunity cost.
B) is inside the production possibilities frontier.
C) has the lowest opportunity cost.
D) does not demand any specialization.
C
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Morgan graduates from college and gets a job paying $50,000 a year. While in school, she consumed 4 pounds of chicken and 1 pound of shrimp a month. After she starts work, she consumes 2 pounds of chicken and 3 pounds of shrimp a month
If everything else is held constant, we know that A) chicken and shrimp are normal goods for Morgan. B) chicken is an inferior good and shrimp is a normal good for Morgan. C) chicken is an inferior good for Morgan. D) shrimp is a normal good for Morgan.
The best way to describe the international position of the U.S. dollar during the 1980's is
a. floating downward most of the time. b. floating downward at first, and then rising sharply. c. stable throughout the decade. d. rising sharply during the first half of the decade, and then falling.