If Alicia limits the range of her productive activities rather than trying to be self-sufficient, she is engaging in

a. specialization
b. exchange
c. absolute advantage
d. increasing opportunity costs
e. reducing her standard of living

A

Economics

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When an external cost exists in the production of a good, firms tend to

A) under-produce the good since society pays these costs. B) over-produce the good. C) keep production constant throughout the year. D) under-allocate resources to the production of the good.

Economics

The price elasticity of supply is

A) negative. B) zero. C) positive. D) unknown, depending on other factors.

Economics