A debt crisis may lead to a banking crisis

Productive efficiency is achieved when

A) firms add a low profit margin to the goods and services they produce. B) firms produce the goods and services that consumers value most. C) there are no shortages or surpluses in the market. D) firms produce goods and services at the lowest cost.

The principle of comparative advantage asserts that

a. not all countries can benefit from trade with other countries. b. the world price of a good will prevail in all countries, regardless of whether those countries allow international trade in that good. c. countries can become better off by exporting goods, but they cannot become better off by importing goods. d. countries can become better off by specializing in what they do best.