When one country can produce a given amount of a good using fewer inputs than any other country,
A. Specialization will definitely increase worldwide production possibilities.
B. It has an absolute advantage in producing the good.
C. It always has a comparative advantage in producing the good.
D. Specialization will definitely increase worldwide consumption possibilities.
Answer: B
You might also like to view...
Use the following figure for the federal funds market to answer the next question.
If the Fed supplies $200 billion in reserves, the equilibrium prime rate is ________.
A. 5.5% B. 5.0% C. 6.0% D. Undeterminable with the information given.
"Over the past two decades, the distribution of income in the United States has become more equal." Is the previous statement or in? Briefly explain your answer
What will be an ideal response?
Which of the following is true of a production possibilities curve?
What will be an ideal response?
If the government imposes a per-unit tax on sales of an industry's product, then we would expect
A. the supply curve in that industry would shift to the left. B. the demand curve for that industry would shift to the right. C. the demand curve for that industry would shift to the left. D. the supply curve in that industry would shift to the right.