Comparative advantage in production is achieved by
A. Subsidizing, specializing, and lowering the price of an exported good.
B. Being able to produce a good with fewer inputs than in other countries.
C. Having a lower opportunity cost of producing a good relative to that of other countries.
D. Having terms of trade that are better than the terms of trade faced in other countries.
Answer: C
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Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, log(Q) = a - bP + cI, where Q is quantity demanded, P is the product price, and I is income
Here, -100b represents the percentage change in quantity demanded given a one unit increase in price. By the Law of Demand, we should expect the value of b to be: A) positive. B) negative. C) positive or negative. D) We do not have enough information to answer this question.
Leakages are offset by investment and government spending in the circular flow model
a. True b. False Indicate whether the statement is true or false
Comparative advantage occurs when: a. one nation can produce a good at a lower cost than its trading partners
b. the international trade of goods occurs within the same industry. c. a nation can produce a good at a lower opportunity cost than its trading partners. d. the different stages of producing a good happen in different geographic locations.
The Polaroid corporation earned a patent for its instamatic camera in the 1960s. If the constitutional length of patent protection is 20 years, why do you believe Polaroid's effective use of its patent ended much earlier?
What will be an ideal response?