Comparative advantage indicates that:
A. specialization and exchange will permit trading partners to maximize their joint consumption.
B. a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods.
C. a nation can gain from trade only when its trading partners are not low-wage countries.
D. countries should export products for which they are high-opportunity cost producers.
Answer: A
You might also like to view...
Marginal, average, and total figures are unrelated.
Answer the following statement true (T) or false (F)
Budget lines: a. are typically positively sloped
b. are typically negatively sloped. c. often have the same slope as indifference curves. d. are generally horizontal.
The amount that a firm receives from the sale of goods and services is:
A. total revenue. B. total cost. C. total profit. D. total benefit.
Before its IPO, Snap, the parent firm of Snapchat, was an example of a private firm. As a private firm, Snap was
A) not subject to government regulations and taxation. B) run by stockholders and a board of directors. C) run by its founders, Evan Spiegel and Bobby Murphy. D) not legally allowed to raise funds through venture capital firms.