The principal concept behind comparative advantage is that a nation should:
Compare its volume of trade with other nations
Use tariffs and quotas to protect the production of vital products for the nation
Concentrate production on those products for which it has the lowest domestic opportunity cost
Make the nation self-sufficient in the production of essential goods and services
Concentrate production on those products for which it has the lowest domestic opportunity cost
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In 2012, the European Central Bank bought the debt of which nation?
A) the United States B) France C) Spain D) Germany
The deepening recession in late 2008 sharply reduced consumer confidence, causing
A. aggregate demand to expand markedly. B. aggregate demand to contract markedly. C. aggregate supply to contract markedly. D. aggregate supply to expand markedly.
Who does not want a tariff?
(a) Consumers of imported goods (b) Domestic businesses producing goods that compete with the imported goods (c) Politicians trying to garner domestic support from the import-competing domestic industries (d) The federal government
Equilibrium price must decrease when demand
a. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. b. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously. c. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. d. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.