If nation A has an absolute advantage over nation B in the production of a product, this implies that:
A. it requires fewer resources in A to produce the good than in B.
B. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B.
C. nation B could not benefit by engaging in trade with A.
D. nation A could not benefit by engaging in trade with B.
Answer: A
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The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The efficient outcome is raising ________
A) 0 goats B) 40 goats C) 50 goats D) 55 goats
How many units should the profit maximizing firm produce?
a. 1 b. 2 c. 3 d. 4
If a firm that experiences economies of scope doubles its production of an item, its costs will less than double
a. True b. False
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A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher