An example of acquired comparative advantage is that
A. the U.S. government provides a subsidy to firms that are trying to increase their exports to other countries.
B. the United States imports coffee beans because coffee beans cannot be grown in the United States.
C. some U.S. consumers prefer German cars over American cars because German cars have a reputation for being very safe.
D. China specializes in the production of labor-intensive goods because of the amount of labor available in the country relative to capital.
Answer: C
You might also like to view...
In a perfectly competitive market, if supply and demand fully reflect all of the costs and benefits associated with production and consumption, then total economic surplus is maximized when:
A. consumer surplus and producer surplus are equal. B. price controls keep prices low enough that most consumers can purchase the item. C. consumer surplus is greater than producer surplus. D. the market is in equilibrium.
Suppose that 50 hot dogs are demanded at a particular price. If the price of hot dogs rises from that price by 5 percent, the number of hot dogs demanded falls to 48 . Using the midpoint approach to calculate the price elasticity of demand, it follows that the
a. demand for hot dogs in this price range is unit elastic. b. price increase will decrease the total revenue of hot dog sellers. c. price elasticity of demand for hot dogs in this price range is about 1.22. d. price elasticity of demand for hot dogs in this price range is about 0.82.
Even economists who advocate small government agree that national defense is a good that the government should provide
a. True b. False Indicate whether the statement is true or false
Which statement is true?
A. Autonomous C can never be greater than induced C. B. Induced consumption can never be zero. C. As disposable income gets larger, induced C gets larger relative to autonomous C. D. None of these statements are true.