Comparative advantage occurs when:
a. one nation can produce a good at a lower cost than its trading partners
b. the international trade of goods occurs within the same industry.
c. a nation can produce a good at a lower opportunity cost than its trading partners.
d. the different stages of producing a good happen in different geographic locations.
c
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In the above figure, what are the long-run equilibrium price level and real GDP?
A) 130 and $11.5 trillion B) 120 and $11.5 trillion C) 120 and $12 trillion D) 130 and $12 trillion
Refer to Table 2-12. What is Guatemala's opportunity cost of producing one sailboat?
A) 1/6 of a canoe B) 2/3 of a canoe C) 3 canoes D) 6 canoes
All of the following are associated with a mixed economy except
a. some public influence over the workings of free markets. b. public ownership mixed in with private property. c. homogenization. d. different countries blending the state and market sectors in different ways.
Which of the following statements about inputs is correct?
a. A forest is an example of a natural resource; it is also an example of a renewable resource. b. There is no distinction between human capital and technological knowledge. c. Human capital is a non-produced factor of production. d. Physical capital is a non-produced factor of production.