Which of the following is an implication of the law of comparative advantage?
a. Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities.
b. Since workers in high-income countries utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries.
c. Countries that are high cost producers of agricultural products should trade those products for goods they can produce only at a low opportunity cost.
d. Countries that are low opportunity cost producers of timber products should trade those products for goods they can produce only at a high opportunity cost.
D
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Propecia was developed to treat mild to moderate male pattern hair loss in men. Marco has hair loss and he is willing to pay any amount of money to be able to buy this drug each month. Marco's price elasticity of demand is ________
A) perfectly inelastic B) perfectly elastic C) elastic D) inelastic
If it takes one country one unit of labor to produce either a computer or a TV, but it takes the other country two units of labor to produce a computer and only one to produce a TV, then the first country has
A. both a comparative and absolute advantage in both goods. B. an absolute advantage in both goods. C. a comparative advantage in both goods. D. an absolute and comparative advantage in production of computers.