According to the principal of comparative advantage a country
A) that produces goods at the lowest absolute cost will export those goods.
B) will import goods it can produce at the lowest relative cost.
C) will export goods it can produce at the lowest relative cost.
D) will only import those goods that it cannot produce for itself.
C
You might also like to view...
If all goods are essential for everyone, efficiency requires that everyone get at least some of each good.
Answer the following statement true (T) or false (F)
When a nation has no funds to finance economic development, how can it acquire the needed funds? Is the country a net lender or a net borrower?
What will be an ideal response?
Which of the following will have a downward impact on efficiency wages?
a. Low monitoring costs b. Excess supply in the labor market c. High equilibrium wage rate d. Excess demand in the labor market
When the capital (a fixed input) changes
A) short-run marginal costs rise. B) short-run average total costs fall but do not shift. C) labor inputs decline. D) the short-run average total cost curve shifts.