If Germany can make compact cars more efficiently than Russia, it enjoys
A. a comparative advantage.
B. an absolute advantage.
C. no advantage.
B. an absolute advantage.
You might also like to view...
If the price in Japan of a U.S. dollar becomes a larger number of yen, the U.S. dollar has ________. The yen has ________ because it buys ________ dollars
A) depreciated; appreciated; more B) appreciated; depreciated; more C) appreciated; appreciated; fewer D) appreciated; depreciated; fewer E) appreciated; appreciated; more
To reduce Agency problems, executive compensation should be designed to
a. be paid baased on quarterly sales b. create incentives so that managers act like owners of the firm c. avoid making the executives own shares in the company d. be an increasing function of the firm's expenses e. all of the above
A technological improvement in producing good A would be a shift in the:
a. supply curve for A to the right. b. supply curve for A to the left. c. demand curve for A to the right. d. demand curve for A to the left.
International trade
a. reduces world output of goods and services b. lowers economic efficiency c. allows countries to specialize in producing particular products d. creates opportunity cost differentials in production e. shifts each economy's production possibilities frontier inward