The central idea behind comparative advantage is that a nation should:
A. Compare its market economy with other nations
B. Specialize in the product that it can produce with the lowest opportunity cost
C. Use money as a medium of exchange to facilitate specialization and trade
D. Pursue investment in capital goods as a means of stimulating economic growth
B. Specialize in the product that it can produce with the lowest opportunity cost
You might also like to view...
With regard to indentured servitude,
(a) indentured servants were typically slaves. (b) this institutional arrangement benefited all parties entering the contract. (c) this institutional arrangement restricted the supply of labor for the colonies. (d) all of the above answers are correct.
The price index values used to calculate headline and core inflation for 2012 through 2016 are found in the table below:
S1 annual inflation rate S2 annual inflation rates b. Which series represents core inflation?
The Smoot-Hawley Act was enacted in
A) 1980. B) 2000. C) 1930. D) 2010.
Indirect business taxes have to be added to national income to get net domestic product because the
a. price of the good includes these taxes, which are not payments to any factor of production b. price of the good includes these taxes, which are payments to the government which is a factor of production c. price of the good excludes these taxes and therefore they have to be added to national income to get net domestic product d. price includes these taxes, which, although part of national income, are not accounted for e. national income includes all taxes that a firm pays to the factors of production