According to the theory of international trade, a nation should
A. always export goods in which it has a comparative advantage.
B. always import goods in which it has an absolute advantage.
C. always export goods in which it has an absolute advantage.
D. always import goods in which it has a comparative advantage.
A. always export goods in which it has a comparative advantage.
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The faster an automobile is driven (speed), the lower the miles per gallon (mpg) for that automobile. Given this information, we say that an automobile's speed and mpg have
A) a direct relationship B) an inverse relationship C) a linear relationship D) a maximum relationship
The largest colony in 1770 in both population and claims on hinterlands was
(a) Massachusetts (b) Pennsylvania (c) Virginia (d) New York
A less-developed nation will be able to benefit substantially by adopting the technologies and the business practices that have been successful in other nations, but only if
a. its wages are low enough. b. its population is large enough. c. it first educates its citizens well, so they can use the new ideas. d. it improves its institutions so that investors are willing to import the capital and any expertise needed to take advantage of the advanced production techniques that are available.
If two goods are complementary goods, then
A. The cross-price elasticity sign is not important. B. The cross-price elasticity sign will be negative. C. The cross-price elasticity will be greater than 1. D. The cross-price elasticity sign will be positive.