In a two-good, two country world, if one country has a comparative advantage in the production of one good, it can benefit by trading with the other country
Indicate whether the statement is true or false
TRUE
You might also like to view...
Firms in an oligopoly are said to be interdependent. What does this mean?
What will be an ideal response?
If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result
a. True b. False
In the circular flow model, there is a money flow of economic resources and finished goods and services and a real flow of income and consumption expenditures.
Answer the following statement true (T) or false (F)
As production of a good increases, opportunity costs rise because:
A. there will be more inefficiency. B. people always prefer having more goods. C. of inflationary pressures. D. workers are not equally suited to all tasks.