When the principle of comparative advantage determines trade, then a country will
A) specialize only in that good with the highest opportunity cost.
B) specialize only in goods with the lowest opportunity costs.
C) specialize only in that good where output is less per worker hour than another country.
D) specialize only in that good where production costs are more than average total costs.
B
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In a fixed exchange rate system, a decrease in the exchange rate at which a currency is pegged is called a(n)
A) devaluation. B) revaluation. C) appreciation. D) depreciation.
In the long run a company that produces and sells covers for cell phones incurs total costs of $2,500 when output is 1,250 covers and $4,000 when output is 1,500 covers. For this range of output, the cell phone cover company exhibits
a. economies of scale. b. constant returns to scale. c. diseconomies of scale. d. efficient scale.
An increase in investment demand would be a consequence of a fall in:
a. The costs of acquiring new technology b. Expected sales of new products c. The rate of technological innovation d. The expected rate of return on investment
In the last two decades, women have completely closed the gender earnings gap.
Answer the following statement true (T) or false (F)