What is the "law of comparative advantage"?
a) Each nation should import only what it cannot produce within the country. b) A country should only restrict trade on its most important and profitable products. c) Countries will be worse off if they restrict trade than if they concentrate on producing what they produce best and then trade. d) Governments should enact tariffs on all foreign imports to protect the domestic economy.
C
You might also like to view...
What type of government is indicated when people vote for their leaders through elections?
a. direct democracy b. autocracy c. monarchy d. anarchy e. representative democracy
Which combination is the biggest impediment to foreign aid being used effectively?
a. no rule of law and liberal economic policies b. corruption and socialist economic policies c. corruption and no rule of law d. socialist economic policies and no rule of law e. free-market economic policies and corruption