Nations will be able to produce a larger joint output and realize mutual gains when each specializes in the production of those items for which it is a low-opportunity cost producer and trades for those things that it could produce only at a high cost. This statement best describes the

a. free rider problem.
b. infant-industry argument.
c. law of comparative advantage.
d. equation of exchange.

C

Economics

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Many people perceive erroneously that most macroeconomists spend a lot of time engaged in

A) forecasting. B) macroeconomic research. C) macroeconomic analysis. D) data development.

Economics

Suppose that the value of the short-run absolute elasticity of demand for a good is 0.3. Then, we know the long-run absolute price elasticity of demand will be

A) 0. B) greater than 0.3. C) elastic. D) less than 0.3.

Economics