A fundamental principle of international trade is that
A. a country could never have lower resource costs than other countries in the production of ALL goods and services.
B. a country could never have lower opportunity costs than other countries in the production of ALL goods and services.
C. two nations could both have a comparative advantage over each other in production of the same good.
D. the world gains from trade because trade allows production of goods and services to move to nations with the lowest resource cost.
B. a country could never have lower opportunity costs than other countries in the production of ALL goods and services.
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What does limited liability mean?
A) The personal assets of the owners cannot be claimed if the business is bankrupt. B) Anybody with a liability against a firm can claim only what their liability refers to. C) The owners of the business are personally responsible for paying expenses incurred by the business. D) Only employees can have a claim on the assets of the business.
If there are four firms in a market and each has an equal market share, the Herfindahl-Hirschman Index (HHI) is ________.
A) 1,600 B) 100 C) 5,500 D) 2,500
The major advantage of the corporation is
a. limited liability for owners. b. greater profit incentive than the other forms of business organization. c. lower taxes for owners, who are taxed only once. d. ability of owners to have hands-on management of the firm.
Crowding out occurs when deficit spending by the government forces private investment spending to contract.
Answer the following statement true (T) or false (F)