The principal concept behind comparative advantage is that a nation should:
A. Maximize its volume of trade with other nations
B. Use tariffs and quotas to protect the production of vital products for the nation
C. Concentrate production on those products for which it has the lowest domestic opportunity cost
D. Strive to be self-sufficient in the production of essential goods and services
C. Concentrate production on those products for which it has the lowest domestic opportunity cost
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Based on the above table, as the production of pizza increases, the opportunity cost of pizza in terms of forgone cases of soda
A) increases. B) decreases. C) does not change. D) initially increases then decreases.
A rise in the price of a nation's currency relative to foreign currencies is called
a. appreciation b. depreciation c. surplus on current account d. foreign exchange e. devaluation