In the real world we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. All of the following are reasons for this except
A) some countries have more resources than other countries.
B) tastes for many traded goods are different in many countries because of globalization.
C) production of most goods involves increasing opportunity costs.
D) not all goods and services are traded internationally.
A
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During what period of time did the United States most consistently adhere to the gold standard?
A) from 1914 until 1929 B) from the eighteenth century until the nineteenth century C) from 1944 until 1980 D) from the nineteenth century until the 1930s
Under the Bretton Woods agreement,
a. nations could not adjust their exchange rates relative to the dollar for any reason b. currency values were based on a market basket of European currencies plus the dollar c. the world monetary system operated exactly like the gold standard of pre-World War II years d. the dollar was selected as the key reserve currency e. gold played no role
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Prior to the Civil War (1861–1865) American capitalism was free from government influence and controls. The government only served as the protector of private property rights and the provider of national defense
Indicate whether the statement is true or false