In economics, international trade is based on the existence of
A. comparative advantage between countries.
B. absolute advantage between countries.
C. relative advantage between countries.
D. output advantage between countries.
Answer: A
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In Econland population and average labor productivity are constant. If a larger proportion of the population enters retirement, then total output will ________ and output per person will ________.
A. decrease; decrease B. remain constant; remain constant C. increase; increase D. decrease; remain constant
During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee
How is the gain from imports distributed between consumers and domestic producers? A) U.S. producer surplus shrinks. B) U.S. consumer surplus increases. C) Total U.S. surplus increases. D) All the above answers are correct.
For a common resource, the marginal private benefit of the resource is greater than the marginal social benefit
Indicate whether the statement is true or false
Fill in the blanks to complete the following statements
"Assume a perfectly competitive market is initially in long-run equilibrium. In the short run, a decrease in raw materials prices will cause the firm's average costs to ________. As a result, the profits of existing firms will ________. However, over the long run, this will cause the number of firms in the market to ________, and market price will ________ until firms once again earn a ________."