When a country loses its comparative advantage in the production of a good it:
A. will become a loser in trade in the long run.
B. will still have the absolute advantage in the production of the good.
C. should stop trading and become self-sufficient.
D. will gain the comparative advantage in the production of another good.
Answer: D
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If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by $1,500, then her saving is ________, and her wealth ________.
A. +$1,000; decreases by $500 B. -$500; decreases by $500 C. -$500; increases by $2,500 D. +$500; decreases by $1,000
In a perfectly competitive market, if P < MC, then
A. too much output is being produced. B. production is efficient, as the firm is earning profits. C. the firm is paying a price for resources that is too high. D. too little output is being produced.
Suppose autonomous consumption decreases. This reduction in autonomous consumption will cause which of the following to occur?
A) The consumption function shifts down. B) The consumption function shifts up. C) The consumption function becomes steeper. D) The consumption function becomes less steep.
Suppose the prices of goods X, Y, and Z are $4, $1, and $5, respectively, and the last unit purchased of good X has a marginal utility MUx = 16 utils. At the point of equilibrium, the marginal utility of the last unit purchased of goods Y and Z will be:
a. MUy = 16 utils and MUz = 16 utils, respectively. b. MUy = 8 utils and MUz = 2 utils, respectively. c. MUy = 4 utils and MUz = 20 utils, respectively. d. MUy = 2 utils and MUz = 4 utils, respectively. e. MUy = 12 utils and MUz = 20 utils, respectively.