If nation A has a comparative advantage over nation B in the production of a product, this implies:
A. it requires fewer resources in A to produce the good than in B.
B. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B.
C. that nation B could not benefit by engaging in trade with A.
D. that nation A could not benefit by engaging in trade with B.
Answer: B
Economics
You might also like to view...
Budget surplus
What will be an ideal response?
Economics
If the Fed buys government bonds through open-market operations, it will
A) increase the demand for bonds in the bond market. B) decrease the demand for bonds in the bond market. C) increase the supply of bonds in the bond market. D) decrease the supply of bonds in the bond market.
Economics