If Japan has a comparative advantage over Canada in the production of computers, which of the following must be true?
a. Supply of unskilled labor in Japan is higher than that in Canada.
b. Japan incurs a lower input cost in the production of computers.
c. Japan incurs a higher input cost in the production of computers.
d. Japan has a lower opportunity cost in the production of computers.
e. Japan has a higher opportunity cost in the production of computers.
d
You might also like to view...
Which of the following indicates that the U.S. economy has become more stable since 1950?
A) less severe fluctuations in real GDP B) longer recessions C) shorter expansions D) All of the above indicate that the U.S. economy has become more stable since 1950.
Which statement is false?
A. If we restrict our imports, our exports will decline. B. Trade restrictions cause economic inefficiency. C. International finance is based on the gold standard. D. None of these statements are false.
A key causal link in the interest-rate-based transmission mechanism for monetary policy is from
A. a monetary policy action to excess reserves. B. the money supply to excess reserves. C. real GDP to investment. D. investment to the interest rate.
When an economy faces an inflationary gap, an appropriate fiscal policy is to
A) increase aggregate demand. B) decrease government expenditure. C) decrease the quantity of money. D) decrease taxes. E) increase the quantity of money.