If a country has a comparative advantage in the production of a good:
A) it can produce that good at a lower opportunity cost.
B) it will find trade most beneficial when it trades with another country that has a comparative advantage in the same good.
C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods.
D) it must also have an absolute advantage in the good.
Ans: A) it can produce that good at a lower opportunity cost.
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One reason investors may prefer bonds over stocks is
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In the equation of exchange, velocity of money increases when
A. Y increases without any changes in P and M. B. Y falls without any changes in P. C. M increases without any changes in P and Y. D. P falls without any changes in Y and M.