The ability to produce a product at a lower resource cost than another nation can produce the same product is called comparative advantage.
Answer the following statement true (T) or false (F)
False
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Compare the effectiveness of monetary policy in an open economy with mobile international capital to monetary policy in a closed economy. Why is it different? Use an appropriate diagram to illustrate your answer
Which of the following statements is true?
A) To an economist, demand is different from quantity demanded. B) A demand schedule is the numerical tabulation of the law of demand. C) A demand curve is the graphical representation of the direct relationship between price and quantity demanded. D) a and b E) a, b, and c
If an individual consumes only two goods and consumption of one good increases, then in order to keep the consumer on the same indifference curve, consumption of the other good must
A) increase. B) decrease. C) increase proportionately. D) become negative.
An important hindrance to developing countries in carrying out monetary policy is that they
a. usually lack central banks b. are usually unable to issue their own currency c. are unable to borrow money d. usually lack effective bond markets e. all of the above