India has a comparative advantage compared to Spain in the production of clothing if
A. India can produce clothing at a lower cost in terms of other goods than Spain can.
B. the demand for clothing is higher in India than in Spain.
C. India can produce clothing using fewer resources than Spain can.
D. India can produce clothing at a lower monetary cost than Spain can.
Answer: A
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The more times a worker performs a particular task, the more proficient the worker becomes at that task. This source of productivity increase is called
A) repetition. B) specialization. C) continuity. D) innovation.
The long-run average cost curve may initially slope downward due to
A) decreasing average fixed costs. B) increasing marginal returns. C) economies of scale. D) All of the above.
The transactions demand for money
A) varies directly with nominal Gross Domestic Product (GDP). B) varies inversely with nominal Gross Domestic Product (GDP). C) varies negatively with real nominal Gross Domestic Product (GDP). D) has no relationship with nominal Gross Domestic Product (GDP).
Which of the following statements about comparative advantage is not true?
a. Comparative advantage is determined by which person or group of persons can produce a given quantity of a good using the fewest resources. b. The principle of comparative advantage applies to countries as well as to individuals. c. Economists use the principle of comparative advantage to emphasize the potential benefits of free trade. d. A country may have a comparative advantage in producing a good, even though it lacks an absolute advantage in producing that good.