When a country loses its comparative advantage in the production of a good it:
A. should stop trading and become self-sufficient.
B. will gain the comparative advantage in the production of another good.
C. will become a loser in trade in the long run.
D. will still have the absolute advantage in the production of the good.
B. will gain the comparative advantage in the production of another good.
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An increase in human capital will tend to cause which of the following?
A) increase labor productivity B) increase the standard of living C) increase economic growth D) all of the above
Bank B receives a deposit of $40,000 . If the value of the money multiplier in the economy is equal to 5, the final change in demand deposits of Bank B will be equal to: a. $40,000
b. $200,000. c. $800,000. d. $150,000.
Until the mid-20th century, nearly all economic growth took place in
A. Canada and the United States. B. Australia and New Zealand. C. Japan. D. Hong Kong, Taiwan, South Korea, and Singapore.
U.S. goods will become relatively less expensive than goods from other countries if prices were to:
A. decrease in the United States and foreign countries at the same rate. B. decrease in the United States only. C. increase in the United States and foreign countries at the same rate. D. increase in the United States only.