According to the principle of comparative advantage,
a. a country will benefit by specializing in the production of goods in which it has a relatively lower cost of production.
b. a country will benefit by specializing in the production of goods in which it has a relatively higher cost of production.
c. a country will benefit by importing goods in which it has a relatively low opportunity cost.
d. a country will benefit by becoming economically self-sufficient.
a. a country will benefit by specializing in the production of goods in which it has a relatively lower cost of production.
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If people posing as a vacationers were able to purchase large numbers of airline tickets from the airlines and later resell them to business travelers
A) group price discrimination on the part of airlines would no longer be profitable. B) group price discrimination on the part of airlines would no longer be profit maximizing. C) the airlines would respond by raising further the price charged to business flyers. D) the people reselling would not earn any economic profit.
Which is not a criticism of the marginal productivity theory of distribution?
A. It assumes that the existing distribution of ownership factors is fair and just when it may not be. B. It does not tell us much about real policy matters. C. A factor’s MRP does not in any way correspond to productive effort. D. It is inconsistent with most empirical observations.
Price fixing is collusive and illegal under U.S. antitrust laws. Predatory pricing, price discrimination, and tying have less obvious effects and are sometimes practiced by non- colluding oligopolists. Describe at least two of these strategies and explain the circumstances under which they raise regulatory concern.
What will be an ideal response?
The monetary policy tool that involves the buying and selling of government bonds is
A) moral suasion. B) reserve requirements. C) the discount rate. D) open-market operations.