A person has a comparative advantage in producing a good if that person:
a. can produce the good at a lower absolute cost than anyone else.
b. can produce the good at a lower opportunity cost than anyone else.
c. can do a better job than anyone else.
d. spends more money in out-of-pocket expenses than anyone else.
e. can produce the good at a higher opportunity cost than anyone else.
b
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Early in U.S. history, health insurance was provided to cover:
a. the catastrophic cost of medical care including hospitalization and physicians' services. b. routine physicians' services. c. medical costs due to specific diseases such as tuberculosis and alcoholism. d. hospital expenses. e. income loss due to disability or disease
We assume that firms, when they are deciding the best rate of output at which to produce
A. want to minimize costs. B. try to get the highest price possible. C. want to maximize profits. D. want to maximize sales.