When compared with China, the growth of clothing exports originating in Bangladesh clearly illustrates the difference between absolute and comparative advantage. Discuss and explain

What will be an ideal response?

While Bangladesh has an absolute disadvantage in clothing (and, on average everything else), the country has a comparative advantage in clothing manufacture and export. Exports of clothing from Bangladesh have consequently surpassed those from China.

Economics

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Using the asset model of short-run exchange rate determination, once the domestic rate of return is determined by MS and MD, the short-run equilibrium ___ can be determined if prices are inflexible and expectations are given.

a. interest rate b. exchange rate c. price level d. income level

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Whether or not the positive externalities generated by education are inframarginal can be measured with a great degree or certainty

a. True b. False

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