The principle of comparative advantage explains how
a. one nation can take advantage of another one through international trade.
b. two nations may engage in mutually beneficial trade, even though one of them is more productive than the other.
c. one individual can take advantage of another through international trade.
d. some people are good at producing everything, while others have no comparative advantages.
e. some nations end up with large trade surpluses.
b
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Gross public debt minus all government interagency borrowing is
A) government budget deficit. B) an entitlement. C) U.S. Treasury bonds. D) net public debt.
Economists are very good at explaining how individual markets work. Economists are less successful at explaining
A. market pricing. B. recessions and inflation. C. central planning. D. business firm profits.
A distinguishing characteristic of producers of information products is their
A) high social cost. B) short-run economies of operation. C) low average fixed costs. D) low fixed costs.
Protection makes the people of a country better off.
Answer the following statement true (T) or false (F)