Explain whether it is possible for a country to have a comparative advantage in the production of a product without having an absolute advantage in the production of that product
What will be an ideal response?
A country can have a comparative advantage without having an absolute advantage in the production of a product because having a comparative advantage means that the country can produce the product at a lower opportunity cost than another country, and having an absolute advantage means a country can produce more of the product than another country while using the same amount of resources. Having an absolute advantage is not required to have a comparative advantage.
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The misperceptions theory was originally proposed by ________ and rigorously formulated by ________
A) Milton Friedman; Robert Lucas B) John Maynard Keynes; Robert Solow C) Edward Prescott; Robert King D) James Tobin; Greg Mankiw
Which of these forms of financing is generally not employed by very large firms?
A) commercial paper B) medium-term notes C) public debt D) mezzanine funds