If a nation has "cheap labor,"
a. it can still benefit from trade.
b. other nations can still compete with it.
c. it cannot have a comparative advantage in everything.
d. All of the above are true.
d
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Which of the following is true?
i. Compared to a no-trade situation, exports make consumers better off. ii. Tariffs make consumers worse off. iii. Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people. A) Only i B) Only ii C) Only iii D) i and iii E) ii and iii
According to new growth theory, technological change is driven by
A) random chance. B) government policies. C) foreign firms' attempts to increase their sales in the domestic market. D) firms' attempts to increase their profit.
How can a warranty at the seller's expense signal that a product is of high quality?
What will be an ideal response?
In Country Z, the government simultaneously decreases its expenditures by $20 billion and decreases taxes by $20 billion. If the MPS is equal to 0.2, the government's action ________ real GDP by ________
A) decreases; $100 billion B) decreases; $20 billion C) decreases; $80 billion D) has no effect on; $0