Larry Has a Comparative Advantage Over His Classmates in Writing

question 138

Multiple Choice

Larry has a comparative advantage over his classmates in writing term papers if he:

• A)can write term papers faster than his classmates.
• B)has an absolute advantage in writing term papers.
• C)always earns an A on his term papers.
• D)has a lower opportunity cost of writing term papers than his classmates.

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Definitions:

After-tax Value

The value of an investment or income after all taxes have been deducted, reflecting the net gain or loss.

Tobin's Q

A ratio comparing the market value of a company's assets to their replacement cost, often used to assess if a company is under or overvalued.

James Tobin

An American economist known for his work on the links between financial markets and economic decisions, especially the Tobin tax concept.

Long-run Value

The intrinsic value of an asset or company based on fundamental analysis, considering its potential for growth and profitability over an extended period.