The principle of comparative advantage suggests that governments should pursue free trade because it ______.
a. equitably distributes human capital worldwide
b. enables countries to grow their economies through specialization
c. prevents poor countries from pursuing technological advances
d. reduces pressure on the economies of countries that have few natural resources
b. enables countries to grow their economies through specialization
You might also like to view...
If the price of beef jerky rises, the substitution effect due to the price change will cause
A) an increase in the demand for hot sauce, a complement for beef jerky. B) a decrease in the quantity of beef jerky demanded. C) an increase in the quantity of beef jerky demanded. D) an increase in the demand for beef jerky.
The "War on Poverty" was declared by President Ronald Reagan in 1982
a. True b. False Indicate whether the statement is true or false
How should per capita real Gross Domestic Product (GDP) be used?
A. Per capita real Gross Domestic Product (GDP) is a good gauge of a nation's quality of life because it takes into account a nation's cultural and spiritual values. B. It is a reasonably good measure of productive activity. C. It is an accurate measure of economic well-being. D. all of these
When the price of a normal good falls, consumers buy a larger quantity because of the ________ effect and the ________ effect
A) substitution; income B) normal; inferior C) substitute; complement D) supply; demand