The theory of comparative advantage implies which of the following?
A. Workers in an industry in which the United States does not have a comparative advantage will be hurt if the United States reduces barriers to trade.
B. The gains to trade are exactly offset by the losses from trade.
C. There are gains to trade for a country as long as that country has a comparative advantage in producing the goods that it imports and exports.
D. A country with an absolute advantage in a good will necessarily have a comparative advantage in that good.
Answer: A
You might also like to view...
The average U.S. unemployment rate from 1948 has been about
A) 19.7 percent. B) 10.7 percent. C) 2.7 percent. D) 5.8 percent. E) 15.7 percent.
In general, one would expect that life expectancies reflect international differences in income levels. Do the data support such a claim?
A) Average life span falls as relative poverty falls. B) Average life span increases as relative poverty falls. C) There is no statistically significant relationship between the two. D) The relation is not very strong. E) The relationship looks more like a U-shape.
Under the rule of reason, no firm with a large market share could be found guilty of violating the Sherman Antitrust Act
a. True b. False
Social Security payments were:
A. not originally adjusted for inflation, causing the real value to retirees to increase over time. B. not originally adjusted for inflation, causing the real value to retirees to decrease over time. C. originally adjusted for inflation, causing the real value to retirees to increase over time. D. originally adjusted for inflation, causing the real value to retirees to decrease over time.