According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by

a. the high opportunity cost producer.
b. the low opportunity cost producer.
c. the producer who is able to hire workers at the lowest wage.
d. the party that can complete the productive activity most rapidly.


B

Economics

You might also like to view...

Briefly describe the following tasks of macroeconomists: forecasting; analysis; research; and data development

What will be an ideal response?

Economics

The rate a bank pays for deposit insurance should be independent of the investments undertaken by the bank with depositors' funds

Indicate whether the statement is true or false

Economics

At what rate is GDP growth reported?

a. monthly, at an annualized rate b. quarterly, at a quarterly rate c. monthly at a quarterly rate d. quarterly, at an annualized rate

Economics

A Pareto improvement

a. cannot take place unless a side payment is made b. cannot take place unless a market is perfectly competitive c. cannot occur unless both parties to a transaction enjoy positive net benefits d. will increase the total net benefits available in a perfectly competitive market e. occurs whenever the sum of market consumer surplus and market producer surplus is positive

Economics