What does it mean for a country to have an absolute advantage in producing a product?
What will be an ideal response?
A country has an absolute advantage in producing a product when it has the ability to produce more of that product than competitors when using the same amount of resources.
You might also like to view...
Does correlation always imply causation? Why or why not? Explain with the help of real-life examples
What will be an ideal response?
Suppose, compared to last year, the price of beer has increased 4%, the price of jeans has increased 7%, and the price of video rentals has decreased 1%
On the basis of this data, what can an economist conclude about the rate of inflation in the overall economy? A) Nothing. B) The inflation rate is 4%. C) The inflation rate is 7%. D) The inflation rate is 10%. E) The inflation rate is 11%.
Everything else held constant, if the expected return on U.S. Treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent, then the expected return of corporate bonds ________ relative to U.S
Treasury bonds and the demand for corporate bonds ________. A) rises; rises B) rises; falls C) falls; rises D) falls; falls
Which of the following will occur if the aggregate quantity supplied is less than the aggregate quantity demanded?
A. Aggregate demand will shift to the right B. Aggregate supply will shift to the left C. There will be a shortage D. There will be a surplus