If two countries each are currently producing two goods, and each begins to specialize in the good in which it has a comparative advantage, what will happen to total world output?
a. It will increase
b. It will decrease.
c. It will be unchanged in both countries.
d. It will rise in one country, and fall in the other, but the total is unchanged.
a
Exhibit 18-3
Economics
You might also like to view...
In the long run in monopolistic competition, firms earn zero economic profit
a. True b. False
Economics
Explain the time inconsistency of monetary policy
Economics
If the supply of a good decreases and demand remains constant equilibrium price:
a. Will decrease, and equilibrium quantity will increase b. Will increase, and equilibrium quantity will decrease c. And quantity will decrease d. And quantity will increase
Economics
Which of the following is most likely to cause a rightward shift of the investment demand curve?
What will be an ideal response?
Economics