Reflecting the theories of Smith, Ricardo, and Heckscher-Ohlin, free trade permits ______, which allows a country to manufacture and export in those areas where they have a comparative advantage
Fill in the blank(s) with the appropriate word(s).
specialization
You might also like to view...
The Net Present Value approach to investment results in an investment being undertaken only if
A) its net present value is positive. B) its net present value is zero. C) it has positive cash flow. D) its internal rate of return equals the rate of interest.
The efficient scale of the firm is the quantity of output that
a. maximizes marginal product. b. maximizes profit. c. minimizes average total cost. d. minimizes average variable cost.
An increase in which of the following would be most likely to increase long-run economic growth?
a) taxes b) interest rates c) consumer spending d) productivity e) value of domestic currency
In every economic system, choices must be made because resources
A. are unlimited, but human desires and wants are limited. B. are unlimited, and so are human desires and wants. C. are limited, but human desires and wants are unlimited. D. are limited, and so are human desires and wants.