When a country or a region of a country specializes in producing the product that has the lower opportunity cost compared to another country or region, it is practicing
A. cost disadvantage.
B. regional advantage.
C. comparative advantage.
D. absolute advantage.
Answer: C
You might also like to view...
A tax on firms for polluting will be most effective in reducing pollution at low cost if the tax
A) is levied on a one-time, lump-sum basis. B) per unit of pollutant is constant. C) per unit of pollutant is lower for low polluting firms. D) per unit of pollutant is proportioned to profits or ability to pay.
For the classical economists, the quantity theory of money provided an explanation of movements in the price level. Changes in the price level result
A) from proportional changes in the quantity of money. B) primarily from changes in the quantity of money. C) only partially from changes in the quantity of money. D) from changes in factors other than the quantity of money.
When two goods have positive cross elasticities of demand and negative income elasticities, they are: a. Normal and substitutes
b. Normal and complements. c. Inferior and substitutes. d. Inferior and complements.
The term used to describe the situation in which government spending causes interest rates to increase and private sector investment to fall is
a. negative feedback b. crowding out c. positive pressure d. transfer of burden e. investment shift