A country possesses a comparative advantage in the production of a good if
A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners.
B) it possesses an absolute advantage in the production of this good.
C) it is able to produce more of this good per hour than can any other country.
D) all of the above.
A
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The largest expenditure component of the federal budget is spending on
A) the military. B) foreign aid. C) environmental protection programs. D) entitlement programs.
Efficiency wages, above equilibrium minimum wage rates, and higher union wages are likely to
A) reduce the equilibrium real wage rate. B) decrease the natural unemployment rate. C) increase the equilibrium real wage rate. D) increase cyclical unemployment. E) increase the natural unemployment rate.