A nation's comparative advantage is determined by
A. the total cost of production.
B. the quantity of resources required to produce a unit of output.
C. the opportunity cost of producing an item relative to a trading partner's opportunity cost of producing the same item.
D. specialization in the production of all goods.
C. the opportunity cost of producing an item relative to a trading partner's opportunity cost of producing the same item.
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The additional payment a borrower has to make on a loan is referred to as:
A) credit. B) stock. C) principal. D) interest.
Refer to Table 17-4. What are the price and quantity of workers that result in the maximum amount of revenue Apple would earn from selling iPods?
A) $120; 4 B) $120; 2 C) $180; 1 D) $140; 2
If 80 percent of the population receives 75 percent of the income,
a. the richest quintile receives 20 percent of the income. b. the Lorenz curve is the diagonal. c. income is not perfectly evenly distributed. d. the poorest quintile receives more than 20 percent of income. e. people in the middle quintile have the highest incomes.
Individuals economize and respond predictably to
A) negative incentives, but not positive incentives. B) positive incentives, but not negative incentives. C) neither positive or negative incentives. D) both positive and negative incentives.