The law of comparative advantage explains why a nation will benefit from trade when
a. it exports more than it imports.
b. its trading partners are experiencing offsetting losses.
c. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
Answer: d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
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The term "dollarization" refers to the adoption of the U.S. dollar by a foreign country as its currency
a. True b. False Indicate whether the statement is true or false
The process by which new product or production methods are introduced is called the Industrial Revolution.
Answer the following statement true (T) or false (F)
Supply-side economics is the school of thought that advocates the use of
A) monetary policy to stimulate long-run aggregate supply. B) fiscal policy to stimulate long-run aggregate demand. C) monetary policy to stimulate short-run aggregate demand. D) fiscal policy to stimulate long-run aggregate supply.
Negative Incentive any kind of incentive to discourage you to take action
What will be an ideal response?