Comparative advantage is the ability to
A) perform an activity at a lower opportunity cost.
B) determine who your best trading partners are.
C) determine the best use of capital goods.
D) convince others of the best choices to make in their own self-interest.
A
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Which of the following shifts the supply curve for oranges?
A) disastrous weather that destroys about half of this year's orange crop B) a newly discovered increase in the nutritional value of oranges C) an increase in the price of bananas, a substitute in consumption for oranges D) an increase in income for all orange consumers
The Heckscher-Ohlin model basically states that countries will specialize and trade those goods in which they have comparative advantage
Indicate whether the statement is true or false
When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good, this is known as a(n)
a. externality b. common pool problem c. nonexcludable resource d. public good e. renewable resource
At each value of the domestic interest rate, decreases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. increase; decrease; increase B. increase; increase; decrease C. increase; increase; increase D. decrease; decrease; decrease