Answer the following statements true (T) or false (F)
1. The ability to produce a good or service at a lower opportunity cost than other producers face is known as comparative advantage.
2. The ability of a nation to gain from specialization and exchange is affected by factors such as shipping costs and exchange rates.
3. One cause for the uneven standard of living throughout the world is the uneven distribution of resources.
4. The application of the principle of comparative advantage requires each of two trading partners to have an absolute advantage over the other in the production of some particular commodity.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
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Which of the following would not be considered a role of the government?
a. promoting competition b. providing public goods c. providing externalities d. regulating natural monopolies e. safeguarding private property and enforcing contracts
Ultimately, productivity growth is the major determinant of a country's standard of living
a. True b. False Indicate whether the statement is true or false