The United States has developed a comparative advantage in digital computers, airliners, and many prescription drugs. The source of its comparative advantage in these products is
A) a favorable climate.
B) technology.
C) abundant supplies of natural resources.
D) a strong central government.
Answer: B
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What is the key difference between the aggregate expenditure model and the aggregate demand/aggregate supply model?
A) The aggregate expenditure model examines monetary policy, whereas the aggregate demand/aggregate supply model does not. B) The aggregate demand/aggregate supply model assumes that the price level is fixed. C) The aggregate expenditure model assumes that real GDP is fixed. D) The aggregate expenditure model assumes that the price level is fixed. E) Monetary and real factors interact in the aggregate demand/aggregate supply model.
Which of the following would lead to an (eventual) increase in the labor force by shifting the labor demand curve?
a. A trend toward earlier retirement ages b. An increase in the working-age population c. A reduction in the number of guaranteed student loans d. An increase in college work-study programs e. A decrease in personal income tax rates