Between two countries, comparative advantage is found by comparing the:
a. relative costs of production in each country.
b. absolute costs of production in each country after accounting for inflation.
c. labor hours required to produce a bundle of products in each country.
d. level of interest rates in each country.
e. shipping and transportation costs of each country.
a
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When the real exchange rate rises
A) imports measured in terms of domestic output will rise. B) imports measured in terms of domestic output will fall. C) imports measured in terms of domestic output will never be affected. D) imports measured in terms of domestic output may rise or fall. E) imports measured in terms of foreign output will rise.
Superfund relies in part on strict liability, which means that
a. an individual can be held liable even if negligence is not proven b. only current waste site owners are liable for damages c. polluters can be held liable for damages but not waste site owners d. a single party can be held liable for all damages even if their contribution to damages is minimal
A production or consumption quota that can be bought or sold is called:
A. a subsidy. B. a tax. C. a tradable allowance. D. a buyers' or sellers' quota.
Explain the problem of adverse selection. How might this problem affect transactions in the insurance industry?
Please provide the best answer for the statement.