Comparative advantage emerges because of the presence of
What will be an ideal response?
differing opportunity costs
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The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then without government intervention
A) no students will go to college. B) less than 10 million students will go to college. C) 10 million students will go to college. D) more than 10 million students will go to college.
Automatic stabilizers reduce fluctuations in GDP by
a. eliminating spending shocks b. increasing the amount of spending each year c. reducing the additional spending that occurs in each round of the multiplier d. increasing saving e. reducing the need for government involvement in the economy
"Net exports" rather than "exports" are included in demand/expenditures, because:
a. Actually, exports are included and not net exports because only exports are a source of demand. b. Imports are counted in personal consumption expenditures. Therefore, net exports instead of just exports are included in aggregate demand. c. Imported goods and services are a part of personal consumption, gross private domestic Investment, and government spending. Therefore, net exports instead of just exports are included in demand. d. Neither exports nor net exports is included in aggregate demand. e. None of the above.
To be successful in changing wage rates and employment conditions, labor unions need to have control over only
A. Their own members. B. The MRP of employers. C. The production decision of employers. D. The labor supply decisions of individual workers.