In general, a nation can enjoy a higher standard of living by ________ than by being self-sufficient.
A. specialization and trading
B. taxing imported goods
C. increasing its versatility
D. avoiding trade with other nations
Answer: A
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What will be an ideal response?
The Country of Rhozundia is blessed with rich copper deposits. The cost of copper produced (relative to the cost of widgets produced) is therefore very low. From this information we know that
A) Rhozundia has a comparative advantage in copper. B) Rhozundia should import copper and export widgets. C) Rhozundia should export both widgets and copper. D) Rhozundia should invest in more in widget production. E) Rhozundia may or may not have a comparative advantage in copper.
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Indicate whether the statement is true or false
The ability of Intel to spread product development costs over a larger number of units of output arises from:
A. Economies of scale B. Diseconomies of scale C. Minimum efficient scale D. Constant returns to scale