When a nation exports a good or service in which it has a comparative advantage, production of the good or service
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what the country imports is needed to determine if production increases, decreases, or does not change.
E) might change, but more information about what else the country exports is needed to determine if production increases, decreases, or does not change.
C
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What is a term referring to a table that shows the quantity supplied at a range of different prices?
a. demand curve b. demand schedule c. supply curve d. supply schedule
If the opportunity cost is 2X = 1Y for country A and 1X = 3Y for country B, then a possible terms of trade is:
A) 1X = 1/3Y. B) 1X = 1/4Y. C) 1X = 1/5Y. D) 1/2X = 1Y.
If the Fed wants to maintain current interest rates, it would be buying government bonds in the open market when ________.
A. investment demand decreases B. the demand for money increases C. the demand for money decreases D. investment demand increases
The practice of factoring involves
A) the syndication of underwriting large security issues. B) the selling of accounts receivable at a discount in return for cash. C) breaking up large mutual funds into smaller funds. D) spreading the risk of insurance through reinsurance.