The idea behind comparative advantage in international trade reflects the possibility that one of the trading nations:
a. may be able to produce everything relatively more efficiently than the other nation.
b. may be able to produce something at a lower dollar cost than the other nation
c. may be able to produce a larger variety of goods than the other nation.
d. may be able to produce something at a lower opportunity cost than the other nation.
d
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Michigan Radio is the state's most listened-to public radio service, attracting approximately 400,000 listeners each week and is funded through listener donations. Listeners can access Sirius satellite radio through a subscription to the service
Michigan Radio is a ________ and Sirius satellite radio is a ________. A) common resource; natural monopoly B) public good; natural monopoly C) natural monopoly; private good D) public good; common resource
Refer to Figure 4.1. The substitution effect of the price change in food on the quantity of food purchased is:
A) the change from F3 to F1. B) the change from F3 to F2. C) the change from F2 to F1. D) the change from F1 to F2. E) none of the above
Which market structure(s) include(s) many firms with differentiated products who can enter and exit the market freely?
The law of increasing opportunity costs states that as
A) less of a good is produced, the higher the opportunity costs of producing that good. B) more of a good is produced, the lower the opportunity costs of producing that good. C) more of a good is produced, the higher the opportunity costs of producing that good. D) more of a good is produced, the opportunity cost of producing the good remains the same. E) a and b