A country has a comparative advantage when the opportunity cost of producing a good in terms of:
a. the monetary value of other forgone goods is lower than that of other nations.
b. the monetary value of other forgone goods is greater than that of other nations.
c. forgone output of other goods is higher than that of other nations.
d. forgone output of other goods is lower than that of other nations.
e. forgone output of other goods is equal to that of other nations.
d
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Refer to the scenario above. John should submit a bid of ________
A) $400 B) $300 C) $100 D) $200
Determining the most socially desirable level of income equality or inequality
a. is done through markets, rather than by the government b. is done directly by firms c. involves normative economics d. involves evaluation of public goods e. involves evaluation of all externalities, both positive and negative