Opportunity cost theory

Related MCQs

• The opportunity cost theory assumes that
• The ability of a firm or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals.
• Country A has 5000 units of labor. It takes 50 units of labor to produce one computer and 1 unit to create a Web page. What is the opportunity cost of a Web page in terms of computers?
• The opportunity cost of producing computers in terms of Web pages is 50 in Country A and is 10 in Country B. Based on the Ricardian model, what can we conclude about the pattern of trade?
• You have an opportunity to invest in Australia at an interest rate of 8%. Moreover, you expect the Australian dollar (A$) to appreciate by 2%. Your effective return from this investment is:
• Trade between two countries can be useful if cost ratios of goods are:
• That identical godos should cost the same in all nations, assuming tis costless to ship godos between nations and there are no barriers to trade, is a reflection of the:
• The H O theory postulates that as a result of trade the differences in factor prices between nations
• The trade theory that states that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports is called
• Theory of Absolute advantage is