TEST BANK OF PRINCIPLES OF
ECONOMICS 12TH EDITION WITH BEST
SOLUTIONS
The process by which resources are transformed into useful forms is
A) Capitalisation
B) Consumption
C) Production
D) Allocation - -answer-C) Production
Outputs in the production process are
A) Pollution
B) Money
C) Goods and services of value to households
D) Resources - -answer-C) Goods and services of value to households
Someone has a comparative advantage in producing a good if they can produce that
good
A) in greater quantities
B) at a lower opportunity cost
C) using more capital and less labour
D) using more labour and less capital - -answer-B) at a lower opportunity cost
If someone has a comparative advantage in growing pineapples
A) she can grow pineapples at a lower opportunity cost than other pineapple growers
B) she also has an absolute advantage in growing pineapples
C) she can grow more pineapples using the same resources than other pineapple
growers
D) pineapples are the only product she can grow - -answer-A) she can grow
pineapples at a lower opportunity cost than other pineapple growers
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