When one country can produce a product at a lower cost in terms of other goods, that country is said to have
A. a comparative advantage.
B. a productive advantage.
C. an absolute advantage.
D. an unfair advantage.
Answer: A
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The utility from a specific product is
A. determined by a consumer's income. B. constant as one consumes more units of it. C. determined by the price of the product. D. a measure of one's preference or taste for it.
Universities are able to act as monopsonists in the market for professors because
A) a university usually does not consider hiring faculty members from another institution. B) faculty members usually have to move to a different city when changing universities. C) students like all of their professors. D) senior faculty members are willing to move to a new university at any cost.
Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991 . However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?
The financial account is the record of a country's international transactions involving purchases or sales of financial and real assets
Indicate whether the statement is true or false