If one country can produce a good with fewer resources than another country, this is called:
A. specialization.
B. geographic advantage.
C. comparative advantage.
D. absolute advantage.
Answer: D
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Economic experience since 1973 indicate that, under floating exchange rates
A) large and persistent departures from external balance were not prevented. B) large and persistent departures from external balance were prevented. C) changes in exchange rates failed to act as automatic stabilizers. D) reduced monetary policy autonomy. E) monetary policy autonomy was protected.
A firm that faces a high-demand period followed by a low-demand period must determine all of the following for peak-load pricing except which one?
A) short-term off-peak price B) short-term peak quantity C) long-run capacity D) long-term off-peak quantity
If you are willing to purchase a house for $500,00 . and you purchase the house for $500,00 . , this transaction will generate:
a. There is no surplus created b. $0 worth of seller surplus and unknown amount of buyer surplus c. $0 worth of buyer surplus and unknown amount of seller surplus d. Not information provided
Total expenditure equals total income
What will be an ideal response?