Comparative advantage in production is achieved by

A. Having a lower opportunity cost of producing a good relative to that of other countries.
B. Being able to produce a good with fewer inputs than in other countries.
C. Subsidizing, specializing, and lowering the price of an exported good.
D. Having terms of trade that are better than the terms of trade faced in other countries.


Answer: A

Economics

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Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in:

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Economics

Long-run economic profits would most likely exist in which market structure?

A) monopoly, monopolistic competition, and oligopoly B) monopoly and oligopoly C) monopoly and monopolistic competition D) monopoly only

Economics

Which of the following is a characteristic of monopolistically competitive industries?

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Economics