If a country has
A) an absolute advantage in producing a good, it definitely also has a comparative advantage in producing that good.
B) an absolute advantage in producing a good, it might or might not have a comparative advantage in producing that good.
C) a comparative advantage in production of a good, it must also have an absolute advantage in producing that good.
D) an absolute advantage in producing a good, it definitely will not have a comparative advantage in producing that good.
E) None of the above answers is correct.
B
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Which of the following are two components of the opportunity cost of using capital already owned by the firm?
A) economic profit and normal profit B) implicit rental rate and economic profit C) explicit rental rate and economic costs D) economic depreciation and forgone interest
Which of the following is a goal of the Federal Reserve?
A) The federal funds rate target B) Changes in reserve aggregates C) Changes in monetary aggregates D) Control of the rate of inflation
When money-demand shifts are the predominant disturbance
A) the interest rate depends on the position of the IS curve. B) the interest rate will be more volatile with an interest-rate target than with a money-supply target. C) the interest rate will be more volatile with a GDP target than with a money-supply target. D) a rigid money-supply target will allow the interest rate to respond to shifts in demand for money.
The demand curve for a product can be derived from consumer equilibrium by:
a. altering the prices of all other products. b. altering consumer incomes. c. shifting consumer preferences. d. altering the price of the good itself. e. knowing the demand curves for all other products.