A country can have a comparative advantage in the production of a good, even if it does not have an absolute advantage in the production of that good
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. Tomaso faces ________ opportunity costs in the production of pizzas and calzones
A) decreasing B) constant C) increasing D) negative
Which components of aggregate expenditure are influenced by real GDP?
What will be an ideal response?
What is the implication of the demographic transition for the labor force? Dependency ratio?
What will be an ideal response?
In the two-country model of international labor mobility
A) the effect of migration is to cause real wages in the two countries to converge. B) the effect of migration is to cause real wages in the two countries to diverge. C) labor has only limited international mobility. D) the long-run equilibrium global real wage is equal to the lesser of the pre-migration wages in the two countries. E) the long-run equilibrium global real wage is equal to the greater of the pre-migration wages in the two countries.