A basic message of Ricardo's theory of comparative advantage is that
What will be an ideal response?
even if countries lack an absolute advantage in the production of any good, consumers can still consume more if there are no restrictions on trade
potential world production is greater with unrestricted free trade than it is with restricted trade
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A barter economy refers to a situation in which goods and services are traded for other goods and services, with no money involved in transactions. The major shortcoming of a barter economy is
A) transactions cannot take place without money. B) the requirement of a double coincidence of wants. C) government has no way of collecting taxes. D) goods and services have no way of storing value.
The larger the value of U.S. imports, the greater the quantity of ________ causing the quantity supplied of dollars to ________
A) U.S. dollars demanded; increase B) U.S. dollars demanded; decrease C) foreign currency demanded; increase D) foreign currency demanded; decrease