If a nation does not have an absolute advantage in producing anything, it
A. has no comparative advantage either.
B. will have a comparative advantage in the activity in which it is least inefficient.
C. will try to get along without trade.
D. will export raw materials and import finished products.
Answer: B
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Comovement is
A) the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth. B) the idea that the standard pattern of contraction—trough—expansion—peak occurs again and again in industrial economies. C) the tendency of many economic variables to move together in a predictable way over the business cycle. D) the idea that peaks and troughs of the business cycle occur at regular intervals.
The most common measure of productivity shocks used by real business cycle theorists is
A) the Solow residual. B) average labor productivity. C) the change in the capital stock. D) unit labor costs.