ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The pay the worker receives for washing the windows in the four houses
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The pay the worker would receive for cutting one lawn
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Cutting the grass at the same four houses
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The pay the worker would have received from cutting the grass at two houses
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The pay the worker would receive for cutting .25 lawns
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Detailed explanation-1: -A country can specialize in producing the goods and services for which it has a comparative advantage and then trade for other required goods and services. So, Comparative advantage determines the gains from specialization and trade. Therefore, the statement is True.
Detailed explanation-2: -Which of the following statements regarding specialization and trade is true? With specialization and trade, a country can consume beyond its production possibilities curve.
Detailed explanation-3: -Which of the following statements describes an economy confronting scarcity? Less of good Y is produced as resources move from producing good Y to producing good X.
Detailed explanation-4: -Land is the scarce factor of production. Other scarce factors include labor, capital, and entrepreneurship.