In the 1970s and 1980s, the United States lost its comparative advantage in consumer electronics goods to Japan. What factor was most responsible for the development of Japan's comparative advantage in consumer electronics goods?
A) Japanese firms benefited from external economies.
B) Japan has abundant supplies of natural resources needed to produce electronics goods.
C) Japanese firms excelled in process technology.
D) Japan has abundant supplies of labor.
C
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Price controls:
a. are always popular with consumers because they lower prices. b. create shortages. c. increase producer surplus because firms can now sell a greater quantity of a good at a lower price. d. are necessary to preserve equity.
Which recent president raised taxes when the income tax share of GDP was very low?
A. George W. Bush B. Ronald Reagan C. Barack Obama D. Bill Clinton
A deficit on the current account:
A. normally causes a surplus on the capital and financial account. B. normally causes a deficit on the capital and financial account. C. has no relationship to the capital and financial account. D. means that a nation is making international transfers.
Adverse selection:
A. usually causes prices to adjust faster than they otherwise would. B. results in fewer market transactions. C. increases the efficiency of most markets. D. makes it easier for all customers to find what they want.