To be as well off as possible, a nation should produce
a. only those goods that its populace desires.
b. the good within its productive capabilities that commands the highest price in the world market.
c. the good that requires the fewest resources to produce.
d. whatever good it can produce at a cost lower than that incurred by other nations.
d. whatever good it can produce at a cost lower than that incurred by other nations.
You might also like to view...
State how each of the following affect the aggregate demand curve
a. The price level increases. b. Consumers expect higher inflation in the future. c. The exchange rate rises. d. Foreign income decreases. What will be an ideal response?
What is the influence of the expected profit and the real interest rate on the amount of investment firms make?
What will be an ideal response?
To calculate GDP by the expenditure method, one must add
A) wages, rents, interest, and profits. B) consumption spending, investment spending, government spending, and net exports. C) labor, natural resources, entrepreneurship, and capital. D) consumption spending, investment spending, government spending, and exports.
When estimating GDP using the income approach, aggregate income is adjusted by
A. subtracting depreciation. B. subtracting indirect business taxes. C. adding indirect business taxes. D. adding net income earned abroad.