A country has a comparative advantage if it can produce a good or service
A. at a higher opportunity cost than can other nations.
B. at a lower opportunity cost than can other nations.
C. by using less resources than other nations.
D. that lies outside its production possibilities curve.
Ans: B. at a lower opportunity cost than can other nations.
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Which of the following increases the supply of a good and shifts its supply curve rightward?
A) a smaller number of producers B) an increase in the price of the good C) a higher wage paid to workers in the industry D) a technological advance in how the good is produced E) an increase in the cost of the resources used to produce the good
Suppose a record company produces both swing and rhythm & blues music. An increase in the market demand for swing music therefore tends to
A) increase the demand for rhythm & blues music. B) increase the cost of producing rhythm & blues music. C) decrease the cost of producing rhythm & blues music. D) leave the cost of producing swing music unchanged.