Which of the following statements is true concerning comparative advantage?
A. Rich nations typically have a comparative advantage in the production of all goods.
B. Poor nations typically have a comparative advantage in the production of all goods.
C. Poor nations typically have a comparative advantage in high-tech but not agricultural goods.
D. Poor nations typically have a comparative advantage in agricultural but not high-tech goods.
Answer: D
You might also like to view...
Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600, while a refrigerator costs $1,800. Which of the following statements is TRUE?
A) The relative price of stoves and refrigerators has not changed. B) The relative price of a refrigerator has increased. C) The relative price of a stove has increased. D) The money price of a refrigerator has fallen.
If three cell phone providers are in an agreement, this is an example of a ________ agreement.
A) vertical B) leftward C) horizontal D) rightward
Economists are strongly united in their belief that the stock market is
A. risk neutral. B. an unfair gamble. C. efficient. D. inefficient.
Exhibit 1A-8 Straight line relationship
According to the Exhibit 1A-8, the relationship between the price and quantity purchased of pizza is:
A. direct. B. inverse. C. complex. D. independent.