In international trade the concept of 'relative opportunity cost' refers to
A) absolute advantage.
B) comparative advantage.
C) technical costs.
D) institutional advantage.
QUESTION 2Which of the following statements characterize an oligopoly market?
a. Oligopoly firms are guaranteed profits due to the lack of competition.
b. Firms are aware that their own economic behavior will influence the decisions of rivals.
c. There are few barriers to entry.
d. Firms choose price and output independently from the decisions made by competitors.
QUESTION 3Suppose Jonah and Carlos have a contract, which Carlos chooses to breach. Jonah sues, and a court orders Carlos to pay him the amount he expected to gain at the time they made the contract, net of any amount he actually did receive after the breach. The form of payment which the court specifies in this example is called:
a. a contingent fee.
b. a specific performance.
c. a capitation.
d. expectation damages.
QUESTION 4Data suggest that which of the following are necessary for high rates of economic growth?
A) private property rights.
B) free markets.
C) clear incentives.
D) all of these choices.
QUESTION 5In oligopolistic markets:
a. there are a large number of sellers.
b. firms are large relative to the size of the market.
c. there are insignificant barriers to entry.
d. firms have no perceptible influence over the market price.
QUESTION 6Which of the following is a legal remedy for a breach of the contract between parties?
a. Liquidated damages
b. Imprisonment
c. Unitization
d. Specificity
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