Which of the following is not a basis for trade between two nations?
a. different skill levels of the labor forces
b. one nation's absolute advantage
c. a difference in tastes between countries
d. economies of scale
e. different capital stocks
B
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The banking system in the U.S. is based on:
A) 100 percent reserve banking. B) fractional reserve banking. C) 0 percent reserve banking. D) none of the above.
If the interest rate increases from 6 percent to 10 percent per year, each $100 saved will earn
a. $4 per year more than before b. $6 per year more than before c. $10 per year more than before d. $16 per year more than before e. $60 per year more than before
For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay
a. True b. False Indicate whether the statement is true or false
Policymakers often consider trade restrictions in order to protect domestic producers from foreign competitors
a. True b. False Indicate whether the statement is true or false