When different regions of a country produce different goods,
a. the production possibilities curve shifts to the left.
b. the country becomes worse off.
c. the principle of comparative advantage has been breached.
d. the country becomes better off if the regions are pursuing their comparative advantages.
d. the country becomes better off if the regions are pursuing their comparative advantages.
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Select the phrase that correctly completes the following statement. "A decrease in the expected future price caused an increase in the supply of smartphones. As a result,
A) the price of smartphones decreased and the demand for smartphones increased." B) the price of smartphones decreased. The lower price caused the supply of smartphones to decrease." C) the price of smartphones decreased and the quantity of smartphones demanded increased." D) the equilibrium quantity of smartphones decreased."
An economy has a fixed price level, no imports, and no income taxes. An increase in autonomous expenditure of $2 trillion increases equilibrium expenditure by $8 trillion
Calculate the multiplier and explain what happens to the multiplier if an income tax is introduced.