The ability of a country to produce a specific good at a lower opportunity cost than its trading partners is known as
A. The human advantage.
B. Absolute advantage.
C. The inequality trap.
D. Comparative advantage.
Answer: D
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If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
The personality of the business leader is necessary for a firm's success
Indicate whether the statement is true or false
Which of the following statements is not correct about a market in equilibrium?
a. The price determines which buyers and which sellers participate in the market. b. Those buyers who value the good more than the price choose to buy the good. c. Those sellers whose costs are less than the price choose to produce and sell the good. d. Consumer surplus will be equal to producer surplus.
Suppose the economy is in long-run equilibrium. If the federal government cuts government spending, which of the following is likely to result?
A) an increase in real GDP and an increase in the price level B) an increase in unemployment and an increase in the price level C) a decrease in unemployment and a decrease in the price level D) a decrease in the price level and an increase in unemployment