Exercising the principle of comparative advantage between nations primarily involves
a. specialization.
b. transportation costs.
c. currency exchange rates.
d. domestic income tax rates.
a. specialization.
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Which of the following most accurately states the importance of technology as a source of economic growth for less-developed countries?
a. Restraints imposed by the slow advancements in modern technology have severely constrained the growth of less-developed countries. b. If modern technology was the only requirement for economic growth, less-developed countries would be growing rapidly. c. Most less-developed nations have the necessary complementary factors of production to make good use of modern technology if they could just afford the complex machines. d. While modern technology has increased the income levels in less developed countries, it has been unable to improve living standards.
A bond buyer is a
a. saver. Bond buyers must hold their bonds until maturity. b. saver. Bond buyers may sell their bonds prior to maturity. c. borrower. Bond buyers must hold their bonds until maturity. d. borrower. Bond buyers may sell their bonds prior to maturity.
Which of the following best explains why productive workers can command high wages?
a. the presence of minimum wage legislation. b. wage and price controls that reflect the political power of labor organizations. c. competition among employers for productive workers. d. the bargaining power of labor unions.
The market is characterized by Qs = 10p, and Qd = 300 - 20p. Suppose the government imposes a $3 per-unit tax on sellers. What price do buyers pay for the product now that it is being taxed?
A) $8 B) $11 C) $13 D) $17