The law of comparative advantage explains why a nation will benefit from trade when
a. it exports more than it imports.
b. its trading partners are experiencing offsetting losses.
c. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
D
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The slope of the consumption function is equal to:
A) the marginal propensity to consume. B) autonomous consumption. C) the marginal propensity to save. D) zero.
In markets-oriented systems an under-performing "entrenched" management is often replaced by
A) SEC regulators. B) a hostile takeover. C) stockholders electing a new board of directors to fire the managers. D) the bank that owns the firm firing them.