According to the concept of comparative advantage, a good should be produced in that nation in which
A) domestic opportunity cost is greatest.
B) domestic opportunity cost is the smallest.
C) money is used.
D) terms of trade are maximized.
B
You might also like to view...
In a small country, the adult population equals 5,000. There are 4,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals
A) 25 percent. B) 80 percent. C) 30 percent. D) an undetermined amount given the lack of information.
High levels of sales that spur high levels of investment spending is an example of a
a. vicious circle. b. virtuous circle. c. convergence circle. d. divergence circle.
An independent variable can be included in a regression model:?
A. ?when it affects y and is uncorrelated with all of the independent variables of interest. B. ?when it does not affect y and is uncorrelated with all of the independent variables of interest. C. ?when it affects y and is correlated with all of the independent variables of interest. D. ?when it does not affect y and is correlated with all of the independent variables of interest.
Which of the following factors would indicate a less elastic demand?
A. The good represents a large fraction of the budget. B. Demand is measured over a longer period of time. C. There are few substitutes. D. The price of the good is high.