The principle of comparative advantage
A. applies only when the gold standard is in effect.
B. is the basic reason that the United States has been running trade deficits.
C. states that it is advantageous to export more than you import.
D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.
D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.
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In 2008, Zimbabwe ran out of locally produced Coca Cola and local Coke bottlers were not able to import the concentrated syrup needed to make Coke from the United States because they could not obtain U.S. dollars
A small amount of Coke was imported from South Africa, but a single bottle sold for around 15 billion Zimbabwean dollars. Zimbabwe was experiencing rapid increases in the price level, which is known as A) deflation. B) inflation. C) hyperinflation. D) stagflation.
What is the relationship between marginal utility and total utility? What happens to total utility as marginal utility declines?
What will be an ideal response?