When a country has a comparative advantage in producing a certain good,
a. the country should import that good.
b. the country should produce just enough of that good for its own consumption.
c. the country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good.
d. None of the above is correct.
d
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An increase in capital brings a large increase in output at a ________ quantity of capital and a small increase in output at a ________ quantity of capital because of ________
A) large; small; the greater the quantity of capital the greater the output B) small; large; diminishing returns along the productivity curve C) large; small; diminishing returns along the productivity curve D) small; large; increasing returns along the productivity curve E) large; small; increasing returns along the productivity curve
The value of the absolute price elasticity of demand for good X is 3. The absolute price elasticity for good Y is 2. Which good's quantity demanded is less responsive to a change in price?
A) Good X B) Good Y C) They are equally responsive. D) Not enough information is given.
The argument that purchases of minivans cause large families is an example of
a. omitted variables. b. normative statements. c. reverse causality. d. bias.
Since about 1970 in the U.S.,
a. decreases in the wages of unskilled workers, relative to skilled workers, have led to increased inequality in family incomes. b. increases in the wages of unskilled workers, relative to skilled workers, have led to increased equality in family incomes. c. inequality in family incomes has increased, despite increases in the wages of unskilled workers relative to skilled workers. d. inequality in family incomes has decreased, despite increases in the wages of skilled workers relative to unskilled workers.