Comparative advantage implies that a country will
A) import those goods in which the country has a comparative advantage.
B) export those goods in which the country has a comparative advantage.
C) find it difficult to conclude free trade agreements with other nations.
D) export goods produced by domestic industries with low wages relative to its trading partners.
B
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A firm operating in a purely competitive labor market has the following marginal revenue product schedule.WorkersMRP1$24222320418516614712If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A. 5 workers B. 4 workers C. 3 workers D. 2 workers
A perfectly competitive firm will shut down in the short run when marginal revenue equals marginal cost at a price less than minimum average variable cost
a. True b. False Indicate whether the statement is true or false
The net export function illustrates that:
a. net exports are a positive function of domestic income. b. net exports are independent of domestic income. c. net exports are a negative function of domestic income. d. exports are a negative function of foreign income. e. exports are independent of foreign income.
Fiscal policy is purposeful movements in ________ designed to direct an economy.
A. legal structures B. interest rates C. government regulations D. government spending and taxes