A country engaging in trade according to the principles of comparative advantage gains from trade because it
A) is producing exports indirectly more efficiently than it could alternatively.
B) is producing imports indirectly more efficiently than it could domestically.
C) is producing exports using fewer labor units.
D) is producing imports indirectly using fewer labor units.
E) is producing exports while outsourcing services.
B
You might also like to view...
The ________________ program has often been popular with both economists and the general public because of the way it effectively increases the payment received for work. On average, benefits from this program come to less than $2,300 per family with children.
a. Temporary Assistance for Needy Families (TANF) b. Supplemental Nutrition Assistance Program (SNAP) c. Aid to Families with Dependent Children (AFDC) d. Earned Income Tax Credit (EITC)
The Washington Consensus argued that transition should begin with
a. The creation of macroeconomic stability b. A free floating exchange rate c. De-privatization d. All of the above e. None of the above
Economic mobility in the United States is
a. uncommon. Over 50 percent of poor families remain poor for 8 or more years. b. uncommon. Over 75 percent of poor families remain poor for 8 or more years. c. common. Fewer than 3 percent of poor families remain poor for 8 or more years. d. common. Fewer than 1 percent of poor families remain poor for 8 or more years.
If the marginal propensity to consume (MPC) is positive and less than one, an increase in disposable income will _____.
Fill in the blank(s) with the appropriate word(s).