The existence of absolute advantage
A. implies that there will be no benefits from trade taking place between two nations.
B. refers to a situation where one country can produce one particular good with fewer units of resources than the other country.
C. fosters the self-sufficiency of the two nations.
D. refers to a situation in which one country can produce all goods with fewer units of resources than can another country.
B. refers to a situation where one country can produce one particular good with fewer units of resources than the other country.
You might also like to view...
What determines the demand for loanable funds and what makes it change?
What will be an ideal response?
Movements in GDP
A) differ greatly from movements in GNP. B) do not differ greatly from movements in GNP. C) are not allowed to differ at all from movements in GNP by definition. D) need to be inflation adjusted in order to match movements in GNP. E) are not relevant to an examination of national income.
The amount of gross investment in the economy depends on the
A) response of expected output to the error in estimating the past period's actual output. B) amount of the difference between the desired capital stock and last period's capital stock that can be put in place this period. C) fraction of the capital stock that is replaced each period. D) All of the above are correct.
A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If sales tax is 8% and is levied on the seller, then the sellers bottom line price is
a. $527,000 b. $523,800 c. $525,000 d. $500,000