When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:
A. a comparative advantage in production of the product.
B. an absolute advantage in production of the product.
C. a higher opportunity cost of producing the product.
D. no incentive to import the product, regardless of the cost-price conditions for other products.
Answer: B
Economics
You might also like to view...
Credit card debt is
A) secured debt. B) unsecured debt. C) restricted debt. D) unrestricted debt.
Economics
Describe the Taylor rule. If the Fed were following the rule, what would the nominal Fed funds rate be if inflation over the past year were 4% and output were 1% below its full-employment level?
What will be an ideal response?
Economics