Which of the following is a difference between absolute advantage and comparative advantage?
a. Absolute advantage occurs when a country has a lower production cost than its trading partner, while comparative advantage occurs when a country produces a good at a lower opportunity cost than its trading partners.
b. Absolute advantage occurs when a country has a higher production cost than its trading partner, while comparative advantage occurs when a country produces a good at a higher opportunity cost than its trading partners.
c. In the case of absolute advantage, a country experiences an increase in total surplus post trade, while in the case of comparative advantage, a country experiences no change in total surplus post trade.
d. Absolute advantage occurs when a country benefits by exporting a particular good, while comparative advantage occurs when a country benefits by importing a particular good.
a
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If marginal utility is a positive number:
a. the more you purchase, the more total utility you get b. the more you purchase, the less total utility you get c. utility is not affected by more purchases d. none of these is correct
Required reserves are the amount of
A) reserves a bank must hold against its deposits as mandated by the Federal Reserve. B) cash a bank must hold against its deposits as mandated by the Federal Reserve. C) checkable deposits a bank must hold against all other deposits as mandated by the U.S. Treasury. D) reserves a bank must hold against all its assets as mandated by the Federal Reserve.
If the rate of job finding rises, the natural rate of unemployment will:
A. remain constant. B. increase. C. decrease. D. rise or decline, depending on the rate of job separation.
Which of the following statements is true about a downward-sloping demand curve that is a straight line?
A. The slope remains the same, but elasticity rises as you move down the demand curve. B. The slope remains the same, but elasticity falls as you move down the demand curve. C. The slope and the elasticity fall as you move down the demand curve. D. The slope and the elasticity are the same at all points.