A nation has a comparative advantage in the production of cars over another nation if:
a. it can produce cars with fewer resources than the other country
b. it can produce cars at a lower opportunity cost than the other country.
c. it can produce cars at a higher opportunity cost than the other country.
d. it can produce cars at the same opportunity cost and its consumers have a stronger preference for cars than consumers in the other country.
b
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The idea of policy making being undertaken as a response to a change in the economy is referred to as
A) active policy making. B) non-discretionary policy making. C) passive policy making. D) Keynesianism.
Suppose compensation is given by W = 512,000 + 217? + 10.08S, where W = total compensation of the CEO, ? = company profits (in millions) = $200, and S = sales (in millions) = $400. How much will this CEO be compensated?
A. $512,000 B. $812,431 C. $43,400 D. $559,432