If one country can produce a good with fewer resources than another country, this is called:
A. specialization.
B. geographic advantage.
C. comparative advantage.
D. absolute advantage.
Answer: D
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The acquisition of a new physical asset by a foreign resident is called
A) foreign direct investment. B) foreign capital investment. C) a portfolio inflow. D) a portfolio outflow.
In answering the question "Did the Civil War help promote economic growth and industrialization?" Hughes and Cain (2011) conclude that
(a) the war, rather than being a major stimulus to industry, was actually a great drain that slowed U.S. economic development for a time. (b) the war was indeed a major stimulus to industry because it promoted the building of wartime factories and new technology, which then provided a basis for rapidly growing production levels when peace came. (c) the war was a setback for the South but a great stimulus for the North. (d) the war seemed to have had no overall impact on the economic growth of the nation.
According to the above table, if the fourth and fifth largest firms in the industry merge, the four-firm concentration ratio in the industry will be
A) 82.5 percent. B) 35.8 percent. C) 69.0 percent. D) 84.1 percent.
Economists assume people's tastes are
a. determined solely by advertising b. relatively stable over time c. quite variable d. irrelevant to utility analysis e. identical