The ability to produce a good or service at a lower opportunity cost than others
What is comparative advantage?
100
What is an example of game theory? (real life, applied example)
What is the answer?
200
A drug test offered to an applicant is a method of
What is screening
200
In the standard PPF model, could one of the producers have an absolute advantage in both goods?
What is Yes
200
The combination of rivalry and nonexcludability causes
What is the tragedy of the commons?
300
This is caused by the agent being the only party with complete information
What is principal-agent problem?
300
If Colombia has a comparative advantage over Mexico in the production of coffee, who sells more coffee?
What is Colombia?
300
Budget constraint problem
What is the answer
400
Those who generally have low willingness to take on risk are said to be?
What is risk-averse?
400
Haiti and Costa Rica both produce coffee and bananas. Haiti can produce 10 tons of coffee per year or 2 tons of bananas. Costa Rica can produce 12 tons of coffee per year or 6 tons of bananas. Which country has an absolute advantage in coffee?
What is Costa Rica?
400
Trade/World Price problem
What is the problem?
500
This type of problem arises from an imbalance of information
What is the principal-agent problem?
500
In the standard PPF model, could one of the producers have a comparative advantage in both goods?