According to the principle of comparative advantage, a nation should specialize in economic activities
A) that incur lower opportunity costs.
B) that incur higher opportunity costs.
C) for which it has an absolute advantage.
D) for which it has no absolute advantage.
A
You might also like to view...
The demand curve for most goods is normally:
A) parallel to the vertical axis. B) parallel to the horizontal axis. C) upward sloping. D) downward sloping.
Provide an example of each allocation method that illustrates when it works badly
What will be an ideal response?
Which of the following will tend to occur when the interest rate increases?
A) The demand for money curve shifts leftward. B) The demand for money curve shifts rightward. C) There is a rightward movement along the demand for money curve. D) There is a leftward movement along the demand for money curve.
If a consumer is maximizing utility, she will purchase quantities of output to the point where the price of the last unit purchased is equal across all goods
a. True b. False Indicate whether the statement is true or false