Comparative advantage explains why a nation will benefit from trade when:
a. it exports more than it imports.
b. its trading partners are experiencing offsetting losses.
c. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
d
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Refer to the above figure. Line EBD is called
A) the saving function. B) the consumption function. C) the 45-degree line. D) aggregate demand.
All of the following statements about marginal benefit are correct EXCEPT the marginal benefit of a good
A) is the benefit a person receives from consuming one more unit of the good or service. B) is measured as the maximum amount that a person is willing to pay for one more unit of the good. C) is equal to zero when resource use is efficient. D) decreases as the quantity consumed of the good increases.
Can a firm make losses by producing the rate of output at which marginal revenue equals marginal cost? Why?
What will be an ideal response?
Gross private domestic investment includes
a. purchases of capital goods, all new construction, and purchases of consumer durable goods b. purchases of capital goods, all new construction, and inventory investment c. purchases of capital goods, all new commercial construction, and inventory investment d. purchases of capital goods, all new residential construction, and inventory investment e. purchases of all types of durable goods, all new construction, and inventory investment