If Pat can produce a good or service at a lower opportunity cost than Chris can, then
a. Pat has a comparative advantage in producing the good or service
b. no gains are possible through specialization
c. Pat must have an absolute advantage in producing the good or service
d. Pat must be more talented than Chris
e. society is at a point along its production possibilities frontier
A
You might also like to view...
At point e in the above figure, the marginal product of labor
A) is less than the average product of labor. B) equals the average product of labor. C) is greater than the average product of labor. D) is at its maximum.
As applied to the price level, the "rule of 70" indicates that the number of years required for the price level to double can be found by:
A. dividing 70 into the annual rate of inflation. B. dividing the annual rate of inflation into 70. C. subtracting the annual change in nominal incomes from 70. D. multiplying the annual rate of inflation by 70.