According to the Ricardian model, the source of comparative advantage is:
a. differences in labor productivity in the different countries.
b. differences in foreign trade policies followed by the governments of the various countries.
c. differences in resource endowments of the economies.
d. differences in the fields of research and development in the countries.
e. differences in the taste and preferences of the consumers in the different countries.
a
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In describing the progress of the typical person in an economy, measuring the median income always does a better job than measuring the mean income
Indicate whether the statement is true or false
When an economy is in equilibrium,
A) planned expenditures exceed production and income. B) there is no savings nor investment. C) government tax revenues equal planned government expenditures. D) production and income equal planned expenditures.