For a nation to engage in international trade on the basis of comparative advantage, it should
A. purchase resources from other nations until it acquires a comparative advantage in at least one product.
B. produce only those goods in which it has an absolute advantage over other nations.
C. specialize in producing those products that have the lowest opportunity cost per unit compared to other nations, then trade some if its output.
D. specialize in the production of those goods that have the highest opportunity cost, then trade the excess output.
C. specialize in producing those products that have the lowest opportunity cost per unit compared to other nations, then trade some if its output.
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Why is the commercial value of ivory a threat to the elephant, while the commercial value of beef is the cow's guardian?
a. Elephants live in Africa, whereas cows live in the United States. b. Elephants are a common resource. c. Cows are a common resource. d. Cows are a public good.
Profit-maximizing firms in a competitive market produce an output level where
a. marginal cost equals marginal revenue. b. marginal cost equals average total cost. c. marginal revenue is increasing. d. price is less than marginal revenue.
Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?
a. Ethiopia b. the United States c. Canada d. South Korea
What is the difference between a public franchise and a public enterprise?
A) A public franchise grants a firm the right to be the sole legal provider of a good or service. A public enterprise refers to a service that is provided directly to consumers through the government. B) A public enterprise grants a firm the right to be the sole legal provider of a good or service. A public franchise refers to a service that is provided directly to consumers through the government. C) A public enterprise is owned by the public through its holdings of shares of stock in the enterprise. A public franchise is a firm owned by the government. D) Both refer to a service provided directly to consumers through the government, but "public franchise" is a term more commonly used in the United States while "public enterprise" is more commonly used in European countries.