Having a comparative advantage in the production of a good implies that a country
a. should specialize in the production of the good
b. is able to produce the good with fewer resources than another country
c. should not specialize in the production of the good
d. also has the absolute advantage in the production of the good
e. cannot have an absolute advantage in the production of the good
A
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According to the economic theory of government, policies in a democracy will favor
A) the interests of many small minorities. B) the public interest. C) the real interests of the majority. D) whatever the majority thinks it wants even when this is not in the majority's real long run interest.
Which of the following statements is false?
a. Economists look at the factors that lead an individual to decide that a particular idea is in his or her best interest. b. Economists do not ask whether a particular decision is in the individual's best interest. c. Choices must be made because of scarcity. d. A particular choice is made by an individual because that choice provides the greatest satisfaction. e. None of these statements is false, they are all true.
One reason why economists often appear to disagree when asked about the impact of some bad economic news is that
a. they do not understand the economy very well b. economics is a very difficult science, and so there are many incorrect economic projections being made c. economists rarely disagree; people just think they are disagreeing because they do not understand the language of economics d. economists often appear to be disagreeing when one is talking about long-run impact while the other is referring to short-run impacts e. economists are by nature competitive individuals and they often disagree
Which of the following is NOT a major concern of international economic theory?
A) protectionism B) the balance of payments C) exchange rate determination D) bilateral trade relations with China E) the international capital market