A fall in the relative prices of a country’s exports tends to ________________ that country’s net exports, and thereby, to ____ its real GDP.
A. increase; raise
B. decrease; raise
C. decrease; decrease
D. None of the above is correct.
Answer: A
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Comparative advantage is most closely related to which of the following concepts?
A) efficiency B) opportunity cost C) fairness D) productivity E) competition
The above figure shows the U.S. market for wheat. With international trade, ________ is the transfer of surplus from consumers to producers
A) area B + area C B) area D C) area C + area F D) area C + area D E) area B + area C + area D
In the long run, perfectly competitive firms make zero economic profit, that is, their owners make a normal profit
Indicate whether the statement is true or false
Absolute advantage is the ability to produce:
A. more of a good at a lower cost. B. more of a good than others with a given amount of resources. C. a good or service at a lower opportunity cost than others can. D. relatively more than any other good with a given amount of resources.