The primary benefit that results when a nation employs its resources in accordance with the principle of comparative advantage is
What will be an ideal response?
a larger output resulting from a more efficient use of resources.
You might also like to view...
Pat gives up a $40,000 per year job to stay at home and take care of the house. By so doing, Pat saves $15,000 in child care and house cleaning services which he now performs himself. The direct effect on GDP from Pat's decision is a decrease of
A) $25,000. B) $15,000. C) $30,000. D) $40,000. E) $55,000.
If a firm that repairs both motorcycles and cars is able to do so at a lower cost than a firm that does only one or the other, this would be an example of
A) economies of scope. B) economies of scale. C) monitoring. D) increasing transactions costs.
The following simple model is used to determine the annual savings of an individual on the basis of his annual income and education.
Savings = 
The variable ‘Edu' takes a value of 1 if the person is educated and the variable ‘Inc' measures the income of the individual.
?
Refer to the model above. The inclusion of another binary variable in this model that takes a value of 1 if a person is uneducated, will give rise to the problem of _____.
A. omitted variable bias B. self-selection C. dummy variable trap D. heteroskedastcity
Table 17.1 YearReal GDPPopulation1$575 billion22 million2$580 billion24 million3$605 billion25 million4$606 billion27 millionRefer to Table 17.1. GDP per capita in year 1 was
A. $26.136 billion. B. $26,136.36. C. $26.136 million. D. $261,363.63.