The concept of comparative advantage is based upon:
A) absolute labor productivity.
B) relative labor costs.
C) dollar prices of labor.
D) relative opportunity costs.
Ans: D) relative opportunity costs.
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The liquidity of money refers to
A) the amount of gold it is backed by. B) how quickly it can be disposed of without high transaction costs. C) asymmetric information. D) the standard of deferred payments and how quickly those payments can be made.
A price ceiling refers to ________
A) the lowest price that a producer is willing to accept for a good B) the highest price that a consumer is willing to pay for a good C) the lower limit on the price of a good D) the upper limit on the price of a good
If the trade line that passes through the production point on the PPC has a slope that is shallower than the slope of the PPC at the same point, then
A) the country can get greater gains from trade if it moves production away from the vertical axis. B) the country can get greater gains from trade if it moves production toward the vertical axis. C) the country cannot improve on its gains from trade. D) There are no gains from trade in this example. E) There is not enough information to tell how it can improve its gains from trade.
Assess the impact on the bond market of the rise in Internet trading of stocks
What will be an ideal response?