If the United States can produce computers efficiently, then what is the most likely reason it imports computers from other countries?
a. Producing computers would take resources from the production of other goods in which the United States has a comparative advantage.
b. Computers manufactured in other countries are of higher quality and are more durable than computers made in the United States.
c. International law requires computer manufacturing to take place in the country of origin of the computer firms.
d. Other countries have an absolute advantage over the United States when it comes to computer manufacturing.
a. Producing computers would take resources from the production of other goods in which the United States has a comparative advantage.
You might also like to view...
If workers accurately predict the rate of inflation, is there a short-run trade-off between inflation and unemployment, as predicted by the Phillips curve? Why or why not?
What will be an ideal response?
When fiscal policy makers wish to reduce aggregate demand, they could enact:
A. contractionary monetary policy. B. expansionary monetary policy. C. contractionary fiscal policy. D. expansionary fiscal policy.
The aggregate demand-aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation.
a. true b. false
An arrangement between firms whereby decision-making is controlled by a board of trustees is known as:
A. a trust. B. a compact between industry and government. C. predatory pricing. D. a merger.