Differences in the productivity of labor account for comparative advantage if:
a. the minimum wage varies across the countries.
b. the size of the domestic market varies across the countries.
c. different countries have differences in labor hours required to produce each good.
d. the strength of workforce varies across countries.
e. the laborers are paid different wages in different countries.
c
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Supporters of Federal Reserve independence contend that independence from the rest of the federal government leads to lower
A) inflation rates. B) interest rates. C) reserve requirements. D) rates of unemployment.
When a person's income increases:
A. the individual's budget constraint shifts straight out, maintaining the same slope. B. the individual's budget constraint shifts straight in, maintaining the same slope. C. the individual's budget constraint rotates out and becomes flatter. D. the individual's budget constraint rotates in and becomes steeper.
Ronald Coase argued that firms exist due to the presence of
A) transfer costs. B) unions. C) transactions costs. D) easy market transactions.
Pure public goods
a. are goods that are provided by the government b. are economically efficient c. are economically inefficient d. are both nonrival and nonexcludable e. are Pareto optimal