Answer the following statements true (T) or false (F)
1) The percentage of the United States' domestic output that is derived from international trade is
higher than that for any other industrially advanced nation.
2) It is impossible for a nation to have a comparative advantage in producing everything.
3) The nation that has a comparative advantage in a particular product will be the only world
exporter of that product.
4) International trade based on the principle of comparative advantage creates a more efficient allocation of world economic resources.
1) F
2) T
3) F
4) T
You might also like to view...
If the economy were at full employment and is producing at point Y,
A. the unemployment rate would increase.
B. the unemployment rate would decrease.
C. the production possibilities frontier would have shifted inward.
D. the production possibilities frontier would have shifted outward.
Which of the following can be said about economic growth?
I. Economic growth is the result of increases in long-run aggregate supply. II. Economic growth is the result of increases in aggregate demand. A) I only B) II only C) I and II D) neither I or II
If a firm fails to provide investors with at least a normal rate of return
A) it will not be able to remain in business in the short run. B) it will have a positive economic profit but a negative accounting profit. C) it will not be able to remain in business in the long run. D) it will shut down in the short run but will be able to remain in business in the long run.
All of the following are forms of social regulation EXCEPT
A) the Food and Drug Administration regulating the quality of drugs. B) the Public Utility Commission regulating the price of telephone service. C) the Environmental Protection Association regulating automobile emissions. D) the Occupational Safety and Health Administration regulating workplace safety.