The law of comparative advantage suggests that
a. curtailing U.S. trade with other countries would make U.S. consumers better off.
b. everyone would be better off if they were self-sufficient.
c. countries will tend to import commodities that they can produce at a relatively low opportunity cost.
d. countries will tend to import commodities that they can produce at a relatively high opportunity cost.
D
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How do liberals believe globalization affects poor countries?
a. makes them wealthier and more able to provide services b. prevents them from playing a role in the financial system c. leaves them at the mercy of powerful neighboring countries d. robs them of all their natural resources
Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?
A) L = 100. B) L = 10. C) L = 5. D) Not enough information is given.