According to international trade theory
A. every country has a comparative advantage in something.
B. comparative advantage is based on absolute advantage.
C. less developed countries cannot trade successfully with developed countries.
D. trade is based on absolute advantage.
Answer: A
You might also like to view...
The problem with spinning is that it may ________ the cost of capital to a firm and thus ________ the efficiency of the capital market
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Which of the following is NOT an expected consequence of balancing the federal government's budget?
A) increased private investment B) increased borrowing from foreigners C) reduced interest payment to foreigners D) B and C.
Which of the following would cause both the equilibrium price and equilibrium quantity of cookies to decrease?
a. a rise in the price of milk (a complement) b. a rise in consumer incomes c. a rise in the price of cookie dough d. a drop in the price of cookie dough e. a rise in the price of crackers (a substitute)
Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?