If a nation can produce a good or service at the lowest opportunity cost, then it
A) might export or import the good, depending on whether or not it has a comparative advantage in the production of the good.
B) can sell the product at a lower price than other nations.
C) will definitely import the good because it can beat other countries' prices.
D) does not want to export the good because the low cost means it makes only a low profit.
E) is best for the nation to not trade the good internationally.
B
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A) limited; limited B) limited; unlimited C) unlimited; unlimited D) unlimited; limited
In the late 1960s, the Friedman-Phelps "natural rate hypothesis" predicted from the microeconomic structure of the labor market that the long-run Phillips Curve is ________, while macroeconomic events caused a very ________ acceptance of this ch
in aggregate supply theory. A) horizontal, rapid B) horizontal, gradual C) vertical, rapid D) vertical, gradual
The total indebtedness of the federal government in the form of outstanding interest-earning bonds is the
a. budget deficit. b. budget surplus. c. national debt. d. trade deficit.
Whenever a consumer purchases good X but not good Y, then:
A. MRSXY ? PX/PY at the chosen bundle. B. MRSXY ? PX/PY at the chosen bundle. C. MRSXY = PX/PY at the chosen bundle. D. MRSXY = - PX/PY at the chosen bundle.