Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that
a. the United States should produce more pork than what it requires and export some of it to Mexico.
b. the United States should produce a moderate quantity of pork and import the remainder of what it requires from Mexico.
c. the United States should refrain altogether from producing pork and import all of what it requires from Mexico.
d. Mexico has nothing to gain from importing United States pork.
a
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Suppose in a country, the working-age population doubles due to immigration. However, the country neglects investment in research and development and hence the country's level of technology is stagnant
Which of the following statements will be true of this economy? A) The economy will experience steady economic growth. B) The savings rate will remain stagnant over the years. C) The economy's output will rise at an increasing rate over time. D) The economy cannot achieve a sustained growth.
The merit standard refers to
A) "To each according to her need." B) "To each exactly the same." C) "To each according to her productivity." D) "To each according to his ability."
How much is the firm's ATC?
According to Keynesian economics, if there are unutilized resources in the economy and aggregate demand decreases
A. real GDP will fall and price level will remain constant. B. real GDP will rise and price level will fall. C. real GDP will rise and price level will remain constant. D. real GDP will rise and price level will rise.