Traders should specialize in the good in which:
A) they have the lowest opportunity cost.
B) they have an absolute advantage.
C) their trading partner has the lowest opportunity cost.
D) they do not have an absolute advantage.
Answer: A) they have the lowest opportunity cost.
Economics
You might also like to view...
A temporary decrease in government purchases causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Economics
The consumer optimum is the set of goods and services, subject to the limited income of the consumer, that
A) the consumer can afford to buy. B) is characterized by zero marginal utility on each good and service. C) maximizes the level of satisfaction for each consumer. D) is characterized by increasing marginal utility.
Economics