Countries import some goods and export other goods primarily because of:
A) unemployment.
B) self-sufficiency.
C) comparative advantage.
D) the law of increasing opportunity cost.
Ans: C) comparative advantage.
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A price floor is:
A. a legal minimum quantity that can be sold at a particular price. B. a legal maximum quantity that can be sold at a particular price. C. a legal minimum price. D. a legal maximum price.
The goal of expansionary fiscal policy with respect to output is to:
A. increase spending and aggregate demand to get back to an output level the government is comfortable with. B. decrease government spending in an attempt to get the private economy back on track. C. increase spending and shift aggregate demand to the left in an effort to reach full employment output. D. increase spending and shift aggregate demand to the right in an effort to reach full employment output.