Should countries specialize in producing goods and services based on having a comparative advantage or an absolute advantage? Why?
What will be an ideal response?
Countries should specialize in producing products based on comparative advantage because this allows countries to produce those products and services at a lower opportunity cost than competitors.
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If quality-detection costs are very low,
a. lower quality products will tend to be outcompeted in the market, and the average quality will rise. b. lower quality products will tend to be outcompeted in the market, but the average quality will fall. c. higher quality products will tend to be outcompeted in the market, and the average quality will rise. d. higher quality products will tend to be outcompeted in the market, and the average quality will fall.
Discrimination exists when a man and a woman with the same levels of education earn different incomes
a. True b. False Indicate whether the statement is true or false