33) what economy dictates specialization, and eventually trade?

a) The principle of comparative advantage

b) The low hanging fruit principle

c) The principle of specialization d) The principle of incentives

34) GDP accounts for

a) All items produced in the economy and sold legally in markets

b) Value of volunteer work

c) Illegal drugs

d) Neither final goods nor services

35) cost-benefit principle dictates that an action is taken when

a) Costs are negative

b) Marginal benefits exceed marginal costs

c) Benefits are positive

d) Marginal costs exceed marginal benefits

36) comparative advantage refers to

a) Absolute advantage

b) The one who never has an advantage over others

c) The fact that one's opportunity cost of performing a task is lower than the other person's

opportunity cost

d) The fact that one's opportunity cost in performing a task is higher than anothers