If countries begin to specialize according to comparative advantage, a more efficient use of resources occurs. As a result, the world output of at least one good increases, with no decrease in the output of any other good
a. True
b. False
A
You might also like to view...
Which of the following is an asset of the Fed?
A) Mortgage-backed securities B) currency C) reserves of depository institutions D) Both answers B and C are correct.
How does the relative price and a household's real income influence its budget line?
What will be an ideal response?
The marginal propensity to consume is defined as
A) the change in consumption divided by the change in disposable income. B) the change in disposable income divided by the change in consumption. C) consumption divided by disposable income. D) disposable income divided by consumption.
After getting a raise at work, Jennie now regularly buys steak instead of hamburger. Based on this behavior, we can assume:
A. steak is a normal good, and hamburger is an inferior good for Jennie. B. steak is an inferior good, and hamburger is a normal good for Jennie. C. steak and hamburger are complementary goods for Jennie. D. steak and hamburger are normal goods for Jennie.