The principle that the cost of something is equal to what is sacrificed to get it is known as the
A) marginal principle.
B) principle of opportunity cost.
C) principle of diminishing returns.
D) reality principle.
Economists refer to things that have already been produced that are in turn used to produce other goods and services as
If scarcity was eliminated,
A) trade would become unnecessary.
B) opportunity costs would increase.
C) all nations would have an absolute advantage in producing all products.
D) the concept of trade-offs would become irrelevant.
According to the theory of ________, specialization and free trade will benefit all trade partners, even when some are absolutely more efficient producers than others.
A) comparative advantage
B) absolute advantage
C) social equity