Under the principle of comparative advantage total output is greatest when each product is made by the country that
A. enjoys an absolute advantage.
B. has the lowest opportunity cost.
C. has the lowest wage rates.
D. has the lowest degree of specialization.
B. has the lowest opportunity cost.
You might also like to view...
Arguments for the balanced budget amendment include all of the following EXCEPT
A) a balanced budget amendment would limit Congress from using fiscal policy during a recession. B) a balanced budget amendment would increase capital formation. C) a balanced budget amendment would reduce the taxation burden on future generations. D) a balanced budget amendment would exert fiscal discipline on the federal government.
Financial intermediaries in the financial system acquire funds from ________ and lend funds to ________.
a) savers; other savers b) savers; borrowers c) borrowers; savers d) borrowers; other borrowers