In the real world we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. All of the following are reasons for this except
A) not all goods and services are traded internationally.
B) some countries have more resources than other countries.
C) tastes for many traded goods are different in many countries because of globalization.
D) production of most goods involves increasing opportunity costs.
Answer: B
You might also like to view...
The inauguration of a new President often increases the degree of optimism in foreign business firms and foreign households, causing net exports to
A) decrease and IS to shift right. B) decrease and IS to shift left. C) increase and IS to shift right. D) increase and IS to shift left.
If every participating firm has the same marginal benefit from industrywide advertising, then ________.
A) requiring every firm to pay the same amount for advertising is not likely to create dissatisfaction amount the firms B) every firm should be required to pay nothing for the advertising C) requiring every firm to pay different amounts for advertising is not likely to create dissatisfaction amount the firms D) requiring every firm to pay the same amount for advertising is likely to create dissatisfaction amount the firms
A way to summarize the actions and payoffs of a sequential game is to use a:
A. decision matrix. B. decision tree. C. payoff tree. D. flowchart.
Under monetary neutrality, an increase in the money supply causes output to ________ and the price level to ________.
A. rise; rise B. not change; rise C. rise; not change D. not change; not change