An individual or country that has a comparative advantage in the production of one good
A) may or may not have an absolute advantage in the good's production.
B) must have an absolute advantage in the good's production.
C) must not have an absolute advantage in the good's production.
D) must not have an absolute advantage in the production of the other good.
A
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A distinction between stocks and bonds is that
A) although the return on a bond is determined by the forces of supply and demand, the return on a stock is set by the stock exchange. B) stocks represent ownership claims to the company and bonds do not. C) bonds must be held for a fixed number of years whereas stocks can be bought and sold at any time. D) bonds can be traded many times in the bond market, while stocks are non-transferable. E) bonds cannot be sold to anyone other than the company that issued it while stocks can be resold to anyone.
A positive externality clearly occurs when
A) a person behaves in the public interest. B) a person's action unintentionally benefits other people. C) a person behaves only with courtesy and social grace. D) a person couldn't care less about anybody else.
Managers of profit centers earn more when their divisions
a. increase their sales and decrease their costs b. decrease their sales and increase their costs c. increase the costs of the components for which they are responsible d. None
An increase in the demand for British pounds might result from: a. a reduction in the price level in the U.S. relative to Britain. b. a recession in the U.S. which reduces real output
c. a decline in interest rates in Britain. d. a decline in interest rates in the U.S.