If Country A can produce a good at a lower opportunity cost than Country B can,
a. there are benefits from trade
b. Country A has an absolute advantage in producing the good
c. economic efficiency has been achieved
d. Country A does not have a comparative advantage in producing the good
e. Country A can sell the good for a higher price abroad
A
You might also like to view...
What is creative destruction? Define political creative destruction
What will be an ideal response?
In the foreign exchange market, the demand for dollars increases and the demand curve shifts if the
A) U.S. exchange rate falls. B) expected future exchange rate falls. C) U.S. interest rate differential decreases. D) U.S. exchange rate rises. E) U.S. interest rate differential increases.
The slope of the aggregate demand curve indicates that ________ in the inflation rate leads to ________ of real GDP demanded by households and firms
A) an increase; a higher level B) a decrease; a lower level C) a decrease; a higher level D) an increase; no change in the level
Which of the following would lead to stagflation?
a. demand-pull inflation b. cost-push inflation c. both of the above d. none of the above