Why might developing countries hesitate to accept the conclusion that countries should specialize according to their comparative advantage? What dynamic gains might offset their objections?
What will be an ideal response?
Comparative advantage could lock developing countries into their current level of development. However foreign capital, and the ability to learn and accumulate capital as a result of trade could allow development to take place.
Economics
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In the United States the share of foreignborn workers with 12 years of education or less is:
a. less than 10%. b. less than 50%. c. more than 70%. d. negligible.
Economics
What denotes the output level where economies of scale are exhausted and constant returns to scale begin?
a. minimum efficient scale b. break-even point c. efficient equilibrium d. zero economic profit
Economics