What does it mean for a country to have a comparative advantage in producing a product?
What will be an ideal response?
A country has a comparative advantage in producing a product when it has the ability to produce that product at a lower opportunity cost than competitors.
You might also like to view...
When the Fed sells government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate ________
A) decrease; decreases; falls B) decrease; increases; falls C) increase; increases; falls D) increase; decreases; rises E) decrease; decreases; rises
In order to have a stable economy, what is the necessary relationship between income and spending? What must then be the relationship between leakages and injections?
What will be an ideal response?
When the prevailing market wage is above equilibrium:
A. the difference between the quantity supplied and the quantity of labor demanded is unemployment. B. the surplus of labor is the amount of unemployment in the market. C. unemployment occurs. D. All of these are true.
The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The consumption effect of the tariff on computers is worth
A. $76 million. B. $78 million. C. $2 million. D. $4 million.