Which of the following is TRUE about comparative advantage?
A. Comparative advantage has nothing to do with trade among nations; it only is concerned with specialization within a firm.
B. Comparative advantage explains trade within nations, but not among nations.
C. Comparative advantage explains trade among nations, but not within nations.
D. Comparative advantage explains trade within nations and among nations.
Answer: D
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It is Valentine's Day and Jason is desperately looking all over town for a dozen roses to give to Judy. Most likely, Jason's price elasticity of demand is:
a. infinitely large. b. negative. c. equal to one. d. greater than one. e. less than one.
In the long run, entry and exit in a perfectly competitive market will drive the price to the point where the: a. marginal cost curve intersects the average total cost curve at its minimum
b. marginal cost curve intersects the marginal revenue curve. c. marginal cost curve intersects the average variable cost curve at the shutdown point. d. marginal cost curve intersects the market demand curve.
Disposable personal income is the income that
a. households have left after paying taxes and non-tax payments to the government. b. businesses have left after paying taxes and non-tax payments to the government. c. households and noncorporate businesses have left after paying taxes and non-tax payments to the government. d. households and businesses have left after paying taxes and non-tax payments to the government.
The inside lags for monetary policy are relatively long compared to those for fiscal policy
Indicate whether the statement is true or false