When a country engages in international specialization, it focuses on producing which of the following?
A) goods with the highest opportunity cost.
B) goods with the lowest opportunity costs.
C) goods for which production takes fewer worker-hour than another country.
D) goods for which production costs are more than average total costs.
Answer: B) goods with the lowest opportunity costs.
You might also like to view...
Which of the following correctly identifies an argument against free trade?
A) Free trade reduces world production. B) Free trade hampers technology transfers. C) Free trade increases the wages in importing countries. D) Free trade may result in job loss in some specific industries in the domestic economy.
Which of the following is included in Germany's GDP?
i. BMWs produced in a German-owned factory in South Carolina ii. the value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange iii. china produced by the English-owned Wedgewood Company at a factory in Berlin, Germany A) i and iii B) ii only C) iii only D) i and ii E) None of the above answers is correct.
Crowding out can be avoided temporarily if the government's debt is internationalized.
Answer the following statement true (T) or false (F)
The cyclically adjusted budget deficit calculates the budget surplus or deficit at
A) real GDP. B) potential GDP. C) nominal GDP. D) average GDP.