When countries specialize in producing those goods in which they have ________, they maximize their combined output and allocate their resources more efficiently.
A. an absolute advantage
B. a greater demand
C. export subsidies from the government
D. a comparative advantage
Answer: D
You might also like to view...
When demand is elastic, a decrease in price will
A) decrease total revenue. B) not change total revenue. C) increase total revenue. D) reduce quantity demanded.
Regarding income distribution and the distribution of wealth
A) wealth is a stock concept and income a flow concept. B) a stock is evaluated at a given moment in time; a flow is evaluated during a period of time. C) income, a flow, can be viewed as a return on wealth. D) All of the above are correct.
Limits of special-interest contributions to national political campaigns
a. would reduce the extent of rent seeking b. would involve concentrated costs and concentrated benefits c. are a form of rational ignorance d. would heighten the advantage of incumbency e. would heighten the advantage of challengers
Other things equal, a 10 percent decrease in corporate income taxes will:
A. decrease the market price of real capital goods. B. have no effect on the location of the investment-demand curve. C. shift the investment-demand curve to the right. D. shift the investment-demand curve to the left.